The Psychology of the Economy

Filed under: Market Comentary

I’m excited to have my special guest, Lexi Provost with us today – talking about the psychology of the economy. Lexi recently graduated from UCSB with a psychology and brain science major. One thing that has been coming up in the real estate industry lately is the psychology of buyers in the current economy. So, I thought it would be helpful and fun to have her join me in this weekly video.

Your Thoughts Affect Your Reality

It doesn’t matter if we are talking about real estate or other life goals, you can “will” it to come true. Years ago, The Secret movie came out that shared the idea of how powerful our thoughts are in influencing our reality. The things that you start to think in your mind start to show up, and that’s true in society as well.

The funny thing is: what we are seeing right now is a situation where people are hearing about a recession, which causes them to change their spending habits. When the word recession is tossed around in the news so much, the sympathetic nervous system is kicking into high gear, which causes you to go into the stress cycle… and affects your behavior.

Stress about a Recession

We have to acknowledge that the most recent experience with the recession and real estate crash was an awful situation for many people. So current psychology ties expectations back to this current memory, making people more stressed and fearful about what could happen with another economic downturn.

There is so much talk of recession, which could make it become a self-fulfilling prophecy.

When it comes to real estate and mortgages, I always say the same thing: don’t ignore where interest rates are right now. None of us know where prices are going to go in the future. What we do know is that rates are great today! Trying to time the market is a challenge, which is why you need to keep the long-term perspective in mind when it comes to real estate values.

If you are looking to lock in a great interest rate, I’m always here to help. Contact me any time to learn more about the available lending solutions to match your needs.

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