With the conflict persisting in the Middle East, it is important to recognize the impact that oil is having on the world, and more specifically, the U.S. housing market. In episode 44 of the RiskWire Webcast, Chief Economist, Eric Fox and Sr. Research Economist, Reena Agrawal, talk about the impact of oil prices on the housing market including inflation, mortgage rates, and new construction.
Here are some highlights from the episode:
- Although the U.S. is a top producer of oil, we are still subject to global oil pricing. While the U.S. is a net exporter of oil, we also import oil, which means we have to compete in the global oil market to buy oil.
- Rising oil prices is driving inflation higher, which then influences the 10-year treasury yields. Since mortgage rates follow these yields, rates have thus been increasing.
- Higher oil prices also result in an increase in costs for transporting raw materials like lumber, which in turn, raises costs of new construction.
Find out how oil prices are impacting your mortgage rates, and your ability to buy a home. Episode 44 of the RiskWire Webcast takes a closer look. Watch it now: Webcast & Interviews – RiskWire, powered by Veros
For additional information about the housing market or economic trends, visit RiskWire.com today! Also, don’t forget to listen to RiskWire: On the House on your preferred channel: Apple Podcasts, Spotify, and YouTube Podcasts.
