Since the housing bubble’s collapse in 2008, the phrase “recession” has had greater emotional resonance than ever. While there is some disagreement over whether we are currently experiencing a recession, the good news is that economists predict that any downturn will be brief and that the economy will swiftly recover.
According to KPMG’s CEO Outlook for 2022:
Global CEOs anticipate a “light and brief” recession but are upbeat about the state of the world economy over the next three years.
Over 80% of people believe there will be a recession within the next 12 months, with more than 50% believing it will be minor and brief.
Housing is often one of the first industries to recover during a slowdown, strengthening that opinion.
This recovery is partly related to past mortgage rate trends during downturns. To relieve your concerns, consider rates from prior economic downturns.
During recessions, mortgage rates typically decrease.
Historical information provides a clearer picture of how a recession can affect the cost of mortgage lending. When looking at U.S. recessions dating back to 1980, it is clear that mortgage rates fell each time the economy slowed down.
Even while history doesn’t always repeat itself, we may still learn from and find solace in the patterns of what has already transpired. Working with a reputable real estate agent will help you make the best choice if you’re considering buying or selling a house. You will then receive professional guidance on what a recession would entail for the home market.
To sum up
History demonstrates that you shouldn’t be afraid of the phrase recession when it comes to the housing market. Work with a real estate professional if you have concerns about the current situation so that you can receive professional guidance and insight you can rely on.