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# Minority Mindset: The Housing Market Is About to Go INSANE…
- URL: https://www.smartinvestingsociety.com/minority-mindset-the-housing-market-is-about-to-go-insane/
- Published: 2022-05-13T12:41:31.000Z
- Updated: 2022-05-13T12:41:31.000Z
- Author: Smart Investing
- Tags: Economy, Real Estate, #wp, #wp-post, #Import 2026-09-30 15:32

It’s no surprise that home prices have been on the rise. For existing homeowners, that’s generally good news. For those looking to buy a home, it isn’t. And now interest rates are rising, and so are mortgage rates.

The cost of home ownership is now growing 10 times faster than wages, which have been having a strong year coming out of the pandemic. This imbalance points to a correction in home prices ahead.

One sign of this trend is the rise of interest in adjustable-rate mortgages, or ARM. As pointed out on the Minority Mindset YouTube channel, these loans haven’t been popular in a while. But they allow banks to make money now on loans as conventional mortgage rates rise and demand dries up.

ARMs offer a teaser rate for the first 5 years of the mortgage. And if rates drop at any time before then, homeowners can potentially refinance into a lower rate. However, that may not be available – which could lead to soaring home financing costs down the line, and lead to a rise in foreclosures.

While the housing market still looks strong, rising rates and lower transactions, combined with the rise of ARMs, points to a potential slowdown for home prices in the months ahead, although some markets will vary.

[To view the full details on rising homeowner costs and how it’s impacting the market, click here.](https://www.youtube.com/watch?v=hjg4aNP1Vvs&ref=smartinvestingsociety.com)