Inflation is skyrocketing to a high it hasn’t seen in 40 years, with gas, food and housing combining to a rate of 8.5 percent. And it doesn’t appear to be done anytime soon.
A new report from Fannie Mae suggests that inflation will continue to grow, leading to a potential “modest recession.” The analyst team noted that it won’t be “similar in magnitude or duration to the recession of 2008,” though Blake Harbin, CEO of Houzzle Financial, still believes there is a cause for concern.
“The numbers are still well worth a look,” Harbin explained, examining the finer details of Fannie Mae’s financial outlook. “According to these, housing sales will drop 7.4 percent this year, and house-price growth as a whole isn’t set to slow down until the first quarter of 2023. It’s worth keeping an eye on not just to see where the economic picture as a whole settles, but also for potential home buyers who are just trying to find a way to make a new start for themselves.”
Harbin also made note of a recent Bank of America report, indicating that three types of “shock” will be entering the picture before 2023 arrives. “First is inflation shock,” said Harbin. “and that will tie in with food items, housing, and gas prices in general. They won’t surge out of control, but their continuing to stay steady will affect quite a few Americans out there.”
He continued, “Next up is rates shock. This comes from the housing market in general, and ties in with what Fannie Mae said earlier. Affordability for new homes likely won’t come until the second half of 2023 – and by that point, it’ll be hard to tell who’s looking for new housing.”
Finally, he pointed out probably the worst of the “shocks.” “With recession shock, quite a few Americans out there will feel the pinch,” said Harbin. “Whether it’s just buying groceries to get by or enough fuel to make the commute to work and back, they’re going to feel a financial crunch in the months ahead. The government needs to do a better job of getting things back on track, because right now, these ‘shocks’ are doing too much harm to the system.”
That said, Harbin did have some hope for the future. “Elections are coming up, and hopefully, we’ll see Americans sound off and tell us what they really think the government should do in terms of quelling this surging inflation. We really need to get back to some common ground if we want to get ahead again.”
Harbin also nodded at his effort to earn a nomination for Georgia’s 6th Congressional District. “With strong momentum I’m pushing to get that nomination in May and make a difference for Georgians,” Harbin noted. “Change definitely needs to happen.”
Blake Harbin is the CEO of Houzzle Financial, as well as a proud Georgia business owner and America First candidate who is running for congress in Georgia’s 6th district. Find out more at blakeharbin.com.
CONTACT: Jerry McGlothlin for Blake Harbin 919-437-0001 jerry@specialguests.com
