What do mortgage rates and inflation have in common? A lot, actually.
Mortgage rates go up when inflation goes up. This is because the Federal Reserve will raise consumer interest rates as a way to decrease the amount of spending happening.
This is what we’re seeing right now. There’s a lot of money flowing in and out of the economy, and the Federal Reserve has raised interest rates to try to slow that.
On the flip side, that means that when inflation goes down, interest rates will go down as well.
Inflation will go down, especially because of the interest rate increases we’ve seen over the past year. So, with that in mind, you can feel confident either buying now and refinancing to a lower rate in the future.
Want to talk more about interest rates and buying a home in this market? Just send me a DM!