Inflation and mortgage rates are two very hot topics right now.
This year, inflation reached a high not seen in 40 years. For many, this has impacted the ability to save money to buy a home.
The Federal Reserve raised the Federal Funds Rate just recently, and financial markets have put upward pressure on elevating mortgage rates. Coupled with rising home prices, this double effect has seriously cooled down the hot housing boom of the last two years.
During 2022, mortgage rates have fluctuated in light of growing economic pressures. Most recently, the average 30-year fixed rate ticked above 6% for the first time in well over a decade. Such increases are the biggest reason for buyer demand pulling back in recent months.
As rates and home prices have risen, affordability is impacted; this has temporarily removed some buyers from the market. Home sales have slowed, and the inventory of homes for sale have increased as a result.
Moving forward, both inflation and mortgage rates will continue to impact the housing market. Interest rates are predicted to remain volatile and the impact of inflation to be uncertain.
A homebuyer’s best bet for staying clearly informed, and truly understanding what such trends in the housing market mean for them is to connect with a trusted real estate advisor like Dennis Hartley. He has an up-to-the-minute pulse on what’s happening in the market and what the experts are projecting, and can surely provide the best advice possible.
Photo by Riccardo Annandale on Unsplash