As the federal foreclosure moratorium comes to an end there are many different opinions on the upcoming and inevitable foreclosure boom. How big will it be? Will it reach levels from the Great Recession? Will it not be as bad as some think? There is really no good answer as most forecasters are just guessing. There is one factor that now has me thinking that the foreclosure market will rise significantly in 2022 but it won't throw the housing market off track. That factor is inflation. It seems clear that the US economy is in an inflationary cycle and probably won't get out of it anytime soon. There are so many factors involved in this inflationary cycle that anyone who tells you they understand it is a fool or lying. But, inflation by definition devalues the dollar which means investing your dollar is better than saving it. Investments in things like houses are a good place to park your money while inflation rages. Thus, it seems very possible that even though foreclosures will rise significantly in 2022, prices will continue to rise or hold steady at current highs. This is because money is still relatively cheap to borrow (likely propping up inflation) and putting your money in a house is better than leaving it in a bank. So I anticipate that the market will continue to be loaded with home buyers even as inventories and foreclosures rise in 2022.