The second largest decrease in housing prices since World War II is likely to occur in America, according to Jeremy Segel, a renowned economist and financial professor at Pennsylvania University, as the Federal Reserve keeps raising interest rates.
He said that the strict tightening campaign of the FBI actually hit the economy sectors sensitive to the interest rate, adding that the concerns that the central bank will keep interest rates “high for a longer period” that scares the markets, according to what it mentioned to the “CNBC” network, and was informed by “Al Arabiya. net”.
For the following 12 months, “I believe we will witness the second-largest decrease in home values since the post-World War,” Siggal said.
He predicted that as mortgage rates rise as a result of the Federal Reserve raising interest rates, housing prices would decline by up to 15%. This occurs when the 30-year fixed interest rate has risen to its highest levels since 2007, when it reached levels above 7%, according to certain criteria.
Yesterday, Tuesday, the National Lenground Association said that its market index fell 8 points to 38 in October, half of what it was 6 months ago.
Following three successive heights of this size, it is widely anticipated by the markets that the Federal Reserve will raise interest rates by 75 basis points at its meetings in November and December.
The Federal Reserve must “slow down and wait and see what has already caused the attention on the economy,” according to Siggal.
He also said that he would support an additional elevation by 50 basis points from the Federal Reserve, if this is followed by a temporary stoppage..
The second-largest decrease in real estate values in 80 years, according to a renowned economist, is coming to America.
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