Fisher Investments’ founder, Executive Chairman and Co-Chief Investment Officer Ken Fisher discusses how the US housing market can be impacted by interest rate hikes and resulting higher mortgage costs. Ken says that while housing represents between 15% and 17% of US GDP*, only a small portion of this—slightly less than 5% of GDP—is more cyclical and therefore more vulnerable to higher mortgage rates: home building and remodeling.
While higher mortgage rates can slow existing home sales and activity associated with it, Ken does not believe weaker housing activity is likely to spur a recession in this economy. However, he points out that new construction and remodeling will likely face tougher pressures from higher mortgage rates.
*Source: NAHB. Housing's Contribution to Gross Domestic Product. Accessed 12/23/2022
For more of Ken Fisher and Fisher Investments’ thoughts on the markets, visit us at [ Ссылка ].
Connect with Fisher Investments on:
• Facebook - [ Ссылка ]
• Twitter - [ Ссылка ]
• LinkedIn - [ Ссылка ]
You can also follow Ken Fisher here:
• Facebook - [ Ссылка ]
• Twitter - [ Ссылка ]
• LinkedIn - [ Ссылка ]
• Instagram - [ Ссылка ]
Investing in securities involves a risk of loss. Past performance is never a guarantee of future returns. Investing in foreign stock markets involves additional risks, such as the risk of currency fluctuations. The foregoing constitutes the general views of Fisher Investments and should not be regarded as personalized investment advice. Nothing herein is intended to be a recommendation. The opinions expressed are subject to change without notice.
![](https://s2.save4k.ru/pic/yhmhyKvx69M/maxresdefault.jpg)