Here’s what faster inflation and rising mortgage rates mean for housing

Reuters/Mike Blake

• The US economy is experiencing healthy economic growth and a strong labor market.
• Combined those are increasing the risk of rising inflation and higher interest rates.
• This could lead to reduced house-buying power.

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As the March Federal Reserve (Fed) meeting approaches, overall positive economic conditions are troubling those who follow the Fed closely. Many might pose the question, why would positive economic conditions be troubling?

Healthy economic growth and a strong labor market are increasing the risk of rising inflation, which increases the likelihood the Fed will raise rates faster than currently expected. The latest jobs’ report indicated a strong start to 2018, with total non-farm payroll employment increasing by 313,000. Impressively, the labor market strength was broad-based, as all industries experienced job gains in February. The robust job market is gradually putting upward pressure on compensation, with wages up 2.6 percent compared with a year earlier.See the rest of the story at Business Insider

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