Stimulus Payments - Effect on Inflation and Housing Affordability
We peaked at close to 5% personal savings during the COVID recession, mainly from stimulus payments directly to the consumer. This helped to prop up spending (and drive some of the inflation) we have seen. As that sending from excess saving drops it will help take some pressure off inflation - BUT it will also make housing affordability more difficult as consumers have less for down payments, and debt service.
You should start planning now for a potential decline in the market - build up your cash!