Understanding the Dynamics of the Housing Market: Examining Interest Rates & Inflation | Morris Invest

by | Aug 31, 2023 | Invest During Inflation | 10 comments

Understanding the Dynamics of the Housing Market: Examining Interest Rates & Inflation | Morris Invest




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Obtaining a HELOC for investing in real estate is possible. I will warn you, it might take some tenacity! If the first (or second, or third, or tenth) lender tells you no, I would encourage you to keep shopping around. While it might be difficult to find the right banking product, using a HELOC for investing is a great way to grow your portfolio. I always encourage investors to try small local banks and credit unions first. If you strike out there, check out Lending Tree ( or contact my friend Dan Kraus at Churchill Mortgage (

Ideas for Getting Started Investing with a Low Credit Score
If your finances aren’t ideal, I’d suggest finding a solid deal that allows you to attract money. In my experience, it doesn’t take a lot of money to get started in real estate if you have grit.

However, if you’re exclusively looking for funding, I can suggest utilizing private money ( or growing your existing funds through Connect Invest (

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How to Learn More About Using a VA Loan to Invest
Using Veterans Affairs financing to get started in real estate can be a powerful strategy. A VA loan has low interest rates and down payments, so if it makes sense for you, I’d recommend buying a performing asset. Friend of the show, Michael Foster, has an amazing book on this strategy. It’s called Military House Hacking: How to Earn Passive Income and Create Generational Wealth (

About Clayton Morris:
As a financial news host and real estate investor, Clayton Morris believes that everyone has the right and the ability to achieve financial freedom – and works to help others to know how to do so. Clayton founded Morris Invest that builds portfolios for their clients and guides them through the buying process, ensuring cash-flowing investments. In his podcast, Investing in Real Estate with Clayton Morris, he offers specific and actionable ways to have financial security and to build a meaningful life. Clayton Morris co-hosts Redacted with his wife, Natali, bringing you news you won’t hear on major networks.

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DISCLAIMER: I am not a financial adviser. I only express my opinion based on my experience. Your experience may be different. These videos are for educational and inspirational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. There is no guarantee of gains or losses on investments.

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Navigating the Housing Market: Interest Rates & Inflation | Morris Invest

When it comes to investing in real estate, one of the key factors to consider is the state of the housing market. Understanding the current interest rates and inflation rates can greatly impact your investment decisions and ultimately determine your success in the real estate market. In this article, we will explore the relationship between interest rates, inflation, and the housing market and provide insights on how to navigate these factors effectively.

Interest rates play a significant role in the housing market as they affect the cost of borrowing money. When interest rates are low, it becomes more affordable for potential homebuyers to finance their purchases. This leads to increased demand for properties, causing prices to rise. On the other hand, when interest rates are high, borrowing becomes more expensive, subsequently reducing the number of qualified buyers and potentially causing property prices to stagnate or even decline.

Inflation is another important factor to consider when investing in real estate. Inflation refers to the general increase in prices over time. While some inflation is inevitable, excessive inflation can erode the value of money and impact the affordability of buying and owning property. High inflation rates can result in increased construction costs, property taxes, and maintenance expenses. This may, in turn, reduce the profitability of real estate investments.

So, how do interest rates and inflation interact to shape the housing market? Generally, when inflation is high, interest rates tend to rise to combat it. This is done by central banks, which often raise the benchmark interest rates to reduce lending and slow down the economy. When interest rates increase, homebuyers may find that mortgage rates are also higher, making property purchases less affordable. This can, in turn, dampen demand and stabilize property prices or even result in a decline.

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Conversely, when inflation is low or below the target rate set by the central bank, interest rates tend to remain low or even decrease. This encourages borrowing and stimulates economic growth. Low interest rates can lead to increased demand for real estate as borrowers seek to take advantage of cheaper financing. The consequent rise in demand can drive up property prices, benefiting real estate investors.

To navigate this complex relationship between interest rates, inflation, and the housing market, investors need to carefully monitor economic indicators and consult with experts in the field. Staying informed about changes in interest rates and inflation rates can provide vital insights into the state of the market and guide investment strategies.

Moreover, it is vital to consider the long-term goals of real estate investing. While short-term fluctuations in interest rates and inflation may impact the market, a well-chosen investment property can generate steady cash flow and appreciate in value over time. By focusing on the fundamentals of the property, such as location, rental demand, and potential for growth, investors can mitigate the impact of interest rates and inflation on their investments.

In conclusion, understanding the relationship between interest rates, inflation, and the housing market is crucial for successful real estate investing. Monitoring economic indicators and staying informed about changes in these factors can help investors navigate the market effectively. By analyzing long-term goals and focusing on property fundamentals, investors can make informed decisions and achieve their financial objectives in the dynamic world of real estate.

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10 Comments

  1. Lashus Journey

    Thank you for all you do!

  2. Dan Kohan

    I really liked the part about not waiting for the perfect time to invest. Nice video!!

  3. ishinta

    There's a striking disparity in the real estate sector between salary growth, which has seen a modest 23.6% rise over two decades, and the significant increase in housing prices. This gap is further complicated by other market elements such as low interest rates and a housing supply deficit. Given this volatility, diversifying your investments into sectors like stocks and cryptocurrencies is a strategic move. Notably, these markets offer a broad range of potentially high-yield investment options. Personally, my investment portfolio has flourished under the expert guidance of Judith Sherwood, yielding over $190k in just nine weeks. In these uncertain times, remember the old adage: fortune indeed favors the bold!

  4. DL K

    What would happen if Trump doesn't post bail and they arrest Trump and lock down the jail with the secret service.

  5. Lorena Velazquez

    Good morning! Huge fan. I have a question, how much are your new property’s you are referencing on your videos? Thank you!

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    Saudi arabia join brics today and Iran agertina

  8. Lucia More

    Getting equity out of investment properties used to be a lot easier. In Florida if a property does not pass a four point and a wind mitigation inspection and it's over 20 years old (best deals are older properties) it is impossible to get insurance and by extension a loan. If you want to flip, it will be to retirees who are cash buyers which takes a huge chunk out of buyer population. Does anyone have any work around suggestions? Capital is most of the game in real estate.

  9. Ninja 87

    When did VA loans become 0% interest?

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