“Global CEOs see a ‘mild and short’ recession:
More than 8 out of 10 ceos anticipate a recession over the next 12 months

“Housing is traditionally one of the first sectors to slow as the economy shifts but is also one of the first to rebound.”
Mortgage Rates Typically Fall During Recessions:
rates decreased in an attempt to stimulate the economy back up.

* If you want to buy or sell a home, you can make the best decision by working with a knowledgeable professional that understands how the housing market is impacted by a recession.

#Recession

The word recession strikes a strong emotional chord of doom and gloom. And while there’s some debate around whether we’re officially in a recession right now, the good news is experts say a recession today would likely be mild and the economy would rebound quickly.

As the KPMG 2022 ceo outlook says: “Global CEOs see a ‘mild and short’ recession, yet optimistic about the global economy over 3-year horizon . . . More than 8 out of 10 ceos anticipate a recession over the next 12 months, with more than half expecting it to be mild and short.”

To add to that sentiment, housing is typically one of the first sectors to rebound during a slowdown. As Ali Wolf, Chief Economist at Zonda, explains: “Housing is traditionally one of the first sectors to slow as the economy shifts but is also one of the first to rebound.” Part of that rebound is tied to what has historically happened to mortgage rates during recessions.

Mortgage Rates Typically Fall During Recessions: Using historical data, we can get a better idea of how a recession might affect the cost of financing a home. Looking back at recessions for the last 25yrs, you will notice that every time the economy slowed down rates decreased in an attempt to stimulate the economy back up.

-Fortune explains mortgage rates typically fall during an economic slowdown: “Over the past five recessions, mortgage rates have fallen an average of 1.8 percentage points from the peak seen during the recession to the trough. And in many cases, they continued to fall after the fact as it takes some time to turn things around even when the recession is technically over.”

Even though history doesn't always repeat itself, we can learn from it and be comforted by the patterns. If you want to buy or sell a home, you can make the best decision by working with a knowledgeable professional that understands how the housing market is impacted by a recession.

Bottom Line, History shows you don’t need to fear the word recession when it comes to the housing market. If you have questions about what’s happening today, work with a real estate professional so you have expert advice and insights you can trust.