We’ve been spoiled for some time with very low interest rates and almost non existent inflation. However, Inflation is once again here at historic levels and interest rates will continue to climb in order to try and combat it.

I hope everyone had the opportunity to re-finance all of your existing loans (1st mortgages should be no more than 2.5% for 30 years) and extend them for as long as possible. Nobody should have a 15 year mortgage at these rates because you can almost certainly get a better return with investments

Those who acquired rental properties before the housing cost boom really made out. The cost of borrowing was really low and you had the added benefit of a huge value increase. There is still time (as interest rates at 3% is still great) but finding properties may prove very difficult.

Also, rising interest rates have a way of turning a strong bull market rather bearish, so those wonderful returns in the markets may be behind us for awhile.

This was a problem of our own making as we flooded the economy with dollars in order to combat pandemic policies. Whether you agree with those policies or not, the bill now comes due.