Pain for home prices, commercial real estate; $50,000 bitcoin: outlook

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US home prices are poised to tumble - while bitcoin may surge to $50,000 by December, crypto investor says

could surge by two-thirds to $50,000 in under six months, the president of a cryptocurrency-investment firm says.

The Federal Reserve's fight against inflation has centered on lifting interest rates from nearly zero to north of 5% within the past 16 months. The US central bank is likely to raise them further and keep them there, ProChain Capital's David Tamil told Fox Business in a"It is going to crush some very interest-rate sensitive industries such as real estate," he said about that prospect.

Higher rates lift mortgage rates, making it more expensive to buy a home using debt. They also raise interest costs for property developers. As a result, they tend to weaken demand for real estate, pulling down prices. American households have been squeezed by historic inflation and higher interest payments on their mortgages, credit cards, car loans, and other debts. Yet home prices are still up about 40% since the COVID-19 pandemic struck in the spring of 2020, according to theIt's only a matter of time before higher interest rates sap demand and home values fall, at least in Tamil's view.

 

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