{"id":7919,"date":"2022-07-20T06:00:55","date_gmt":"2022-07-20T10:00:55","guid":{"rendered":"https:\/\/blog.sfloridaluxuryhomes.com\/?p=7919"},"modified":"2022-07-20T06:00:55","modified_gmt":"2022-07-20T10:00:55","slug":"should-you-buy-a-home-with-inflation-this-high","status":"publish","type":"post","link":"https:\/\/blog.sfloridaluxuryhomes.com\/?p=7919","title":{"rendered":"Should You Buy a Home with Inflation This High?"},"content":{"rendered":"
\n

\"Should<\/p>\n

While the Federal Reserve <\/em>is working hard to bring down inflation, the latest data<\/a> shows the inflation rate is still going up. You no doubt are feeling the pinch on your wallet at the gas pump or the grocery store, but that news may also leave you wondering: should I still buy a home right now?<\/em><\/span><\/p>\n

Greg McBride, Chief Financial Analyst at Bankrate<\/em>, explains<\/a> how inflation is affecting the housing market:<\/p>\n

\n

\u201cInflation will have a strong influence on where mortgage rates go in the months ahead<\/strong>. . . . Whenever inflation finally starts to ease, so will mortgage rates \u2014 but even then, home prices are still subject to demand and very tight supply.\u201d<\/em><\/p>\n<\/blockquote>\n

No one knows how long it\u2019ll take to bring down inflation<\/a>, and that means the future trajectory of mortgage rates is also unclear. While that uncertainty isn\u2019t comfortable, here\u2019s why both inflation and mortgage rates are important for you and your homeownership plans.<\/p>\n

When you buy a home, the mortgage rate and the price of the home matter. Higher mortgage rates impact how much you\u2019ll pay for your monthly mortgage payment \u2013 and that directly affects how much you can comfortably afford. And while there\u2019s no denying it\u2019s more expensive to buy and finance a home this year than it was last year, it doesn\u2019t mean you should pause your search.\u00a0Here\u2019s why.<\/p>\n

Homeownership Is Historically a Great Hedge Against Inflation<\/strong><\/h4>\n

In an inflationary economy, prices rise across the board. Historically, homeownership is a great hedge<\/a> against those rising costs because you can lock in what\u2019s likely your largest monthly payment (your mortgage) for the duration of your loan. That helps stabilize some of your monthly expenses. Not to mention, as home prices<\/a> continue to appreciate, your home\u2019s value will too. That\u2019s why Mark Cussen, Financial Writer at Investopedia<\/em>, says<\/a>:\u00a0<\/em><\/p>\n

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\u201c<\/em>Real estate is one of the time-honored inflation hedges.<\/em><\/strong> It\u2019s a tangible asset, and those tend to hold their value when inflation reigns, unlike paper assets. More specifically, as prices rise, so do property values.\u201d<\/em><\/p>\n<\/blockquote>\n

Also, no one is calling for homes to lose value. As Selma Hepp, Deputy Chief Economist at CoreLogic<\/em>, says<\/a>:<\/p>\n

\n

\u201cThe current home price growth rate is unsustainable, and higher mortgage rates coupled with more inventory will lead to slower home price growth but unlikely declines in home prices<\/strong>.\u201d<\/em><\/p>\n<\/blockquote>\n

In a nutshell, your home search doesn\u2019t have to go on hold because of rising inflation or higher mortgage rates. There\u2019s more to consider when it comes to why you want to buy a home. In addition to shielding yourself from the impact of inflation and growing your wealth<\/a> through ongoing price appreciation, there are other reasons to buy a home right now like addressing your changing needs and so much more.<\/p>\n

Bottom Line <\/strong><\/h3>\n

Homeownership is one of the best decisions you can make in an inflationary economy. You get the benefit of the added security of owning your home in a time when experts are forecasting prices to continue to rise.<\/p>\n

Content previously posted on Keeping Current Matters<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

\"ShouldWhile the Federal Reserve is working hard to bring down inflation, the latest data shows the inflation rate is still going up. You no doubt are feeling the pinch on your wallet at the gas pump or the grocery store, but that news may also leave you wondering: should I still buy a home right [\u2026]<\/div>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"bgseo_title":"","bgseo_description":"","bgseo_robots_index":"","bgseo_robots_follow":"","footnotes":""},"categories":[3,134,84,121],"tags":[],"class_list":["post-7919","post","type-post","status-publish","format-standard","hentry","category-blog","category-buying-myths","category-for-buyers","category-pricing"],"_links":{"self":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/posts\/7919","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7919"}],"version-history":[{"count":0,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/posts\/7919\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7919"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7919"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7919"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}