With the threat of rising interest rates at the forefront of investors’ minds, the question of whether or not real estate will be affected is now more pertinent than ever.
Briton Hill, president of Weber Global Management, discusses the risks that higher interest rates play on the housing markets, as well as stocks and gold, with David Lin, anchor for Kitco News.
“I don’t think we’ll see a 2008-type correction in real estate. Mostly, that’s because one of the big contributing factors back then was the variable interest rates. Since then, variable interest rates aren’t as prevalent. You don’t see that as often, but there still is the risk that you could have a real estate pullback, and mostly it would be attributed to interest rates rising rapidly,” Hill said.
Rising interest rates would be especially harmful if interest expenses on homes rise faster than salaries, Hill noted.
For more information on the top stock sectors that will beat inflation, and Hill’s outlook on gold, watch the video above.
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