"If you don't own a home, buy one." John Paulson

You may have heard successful hedge fund manager John Paulson's recent comments regarding inflation.  He told a standing room only crowd at New York's University Club that double digit inflation is on its way.  With regards to real estate, Mr. Paulson suggested, "If you don’t own a home, buy one.  If you own one home, buy another one, and if you own two homes buy a third and lend your relatives the money to buy a home.” 

In an inflationary environment, a fixed mortgage becomes less of a burden as wages and consumer prices increase.  The loan is essentially paid back with less valuable dollars than were originally borrowed.  Whether or not Mr. Paulson's prediction regarding inflation holds true is yet to be seen, but his track record is impressive.  Locking in a 30 year fixed rate loan at today's rates and paying it back in future, cheaper dollars sounds wise to me.