There are numerous benefits to investing in a mortgage fund. Click here for a list of benefits. However, one benefit not often talked about is a hedge against inflation.
In the last year, to fight the COVID-19 pandemic, the government injected over 2.5 trillion dollars into the US economy. These are not dollars generated by third-party investors buying US treasuries. These are dollars just printed and injected into the economy that may eventually overheat the economy, resulting in inflation.
I believe inflation is on the horizon and that it’s only a matter of time before it materially affects our economy with rising interest rates. There is not an immediate correlation between the rise in US Treasuries rates and private money rates. Long-term interest rates will have to increase and remain consistently higher before it materially affects private money yields.