The bond market is at a historic low, but the overall pulse of the economy is strong as many are becoming fearful of a recession, Brent Beardall, CEO of Washington Federal told CNBC.
“My biggest concern is that we’re so worried about a recession that we talk ourselves into a recession,” said Beardall. “We’re not seeing a recession on the streets today.”
In this Video Spotlight, Beardall discusses the health of housing and the strength of the consumer, with a focus on HELOCs and recession fears.
The risk of a recession is on everyone’s mind, both in the U.S. and around the world. Realtor.com notes that Germany is already teetering on the brink of recession and the U.K. is facing unrest related to “Brexit”, while in the U.S., a rapidly escalating trade war with China is increasing fears. However, despite these risks, real estate should be safe, unlike in 2008.
"This is going to be a much shorter recession than the last one," predicts George Ratiu, Senior Economist with realtor.com. "I don't think the next recession will be a repeat of 2008. The housing market is in a better position."
“There’s real reason we could talk ourselves into a recession,” Bearden notes. He goes on to state that an upcoming recession may be little more than a debt, not a serious recession like in 2008.