Fears of rising inflation in the US have been garnering attention all over the news and in many other countries. The Economist (a magazine published in the UK) included in its November 13, 2021, edition an article entitled “A three-decade high in inflation sows concerns about America’s recovery”. The Australian (a newspaper printed in Australia) included an article with the headline “US inflation spike to record levels means mortgage rates in Australia are almost certain to rise.” Forbes published during September 2021 an article about inflation and mortgages[1] and how it might be a good time to buy a house to protect yourself against rising inflation. And we could continue citing interesting inflation-related articles.
Better than just letting you navigate in the news, let us try to give you our point of view on what you as a borrower of real-estate related loans, be it a mortgage for your new home or a bridge loan for a fix and flip, should know about inflation and loans.