Borrowing Boom Real Estate as a Hedge

Starting in March 2022, the Federal Reserve embarked on what’s been called “the sharpest round of rate hikes since the 1980s” to combat inflation.² The average 30-year fixed mortgage rate is more than double what it was last year, and could rise even further.

The expectation is that a new generation of millionaires – flush with the wealth gains they earned over the last two years – could turn to real estate as a hedge against inflation.

“I think buyers don’t mind taking some money out of the stock market right now and putting it into something more tangible like luxury real estate,” said Roger Pettingell, a Luxury Property Specialist affiliated with Coldwell Banker Realty in Sarasota and Longboat Key, Florida.

Wealth of U.S. individuals with a net worth over $5 million is expected to RISE BY 35.4% between 2019 and 2022.

Source: Wealth-X