{"id":8144,"date":"2022-09-27T06:00:24","date_gmt":"2022-09-27T10:00:24","guid":{"rendered":"https:\/\/blog.sfloridaluxuryhomes.com\/?p=8144"},"modified":"2022-09-27T06:00:24","modified_gmt":"2022-09-27T10:00:24","slug":"how-an-expert-can-help-you-understand-inflation-mortgage-rates","status":"publish","type":"post","link":"https:\/\/blog.sfloridaluxuryhomes.com\/?p=8144","title":{"rendered":"How an Expert Can Help You Understand Inflation & Mortgage Rates"},"content":{"rendered":"
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\"How<\/p>\n

If you\u2019re following today\u2019s housing market, you know two of the top issues consumers face are inflation and mortgage rates. Let\u2019s take a look at each one.<\/span><\/p>\n

Inflation\u00a0<\/strong>and the Housing Market<\/strong><\/h4>\n

This year, inflation<\/a> reached a high not seen in forty years<\/a>. For the average consumer, you probably felt the pinch at the gas pump and in the grocery store. It may have even impacted your ability to save money to buy a home.<\/p>\n

While the Federal Reserve<\/em> is working hard to lower inflation, the August data<\/a> shows the inflation rate was still higher than expected. This news impacted the stock market and fueled conversations about a recession. It also played a role in the Federal Reserve\u2019s<\/em> decision to raise the Federal Funds Rate last week. As Bankrate <\/em>says<\/a>:<\/p>\n

\n

\u201c. . .<\/em><\/strong> the Fed has raised rates again, announcing yet another three-quarter-point hike on September 21 . . . The hikes are designed to cool an economy that has been on fire. . .\u201d<\/strong><\/em><\/p>\n<\/blockquote>\n

While their actions don\u2019t directly dictate what happens with mortgage rates, their decisions have contributed to the intentional cooldown in the housing market. A recent article from Fortune <\/em>explains<\/a>:<\/p>\n

\n

\u201cAs the Federal Reserve moved into inflation-fighting mode, financial markets quickly put upward pressure on mortgage rates. Those elevated mortgage rates . . . coupled with sky-high home prices, threw cold water onto the housing boom.\u201d<\/strong><\/em><\/p>\n<\/blockquote>\n

The Impact on Rising Mortgage Rates<\/strong><\/h4>\n

Over the past few months, mortgage rates have fluctuated in light of growing economic pressures. Most recently, the average 30-year fixed mortgage rate<\/a> according to Freddie Mac<\/em> ticked above 6% for the first time in well over a decade (see graph below<\/em>):<\/p>\n

\"How<\/a><\/p>\n

The mortgage rate increases this year are the big reason buyer demand<\/a> has pulled back in recent months. Basically, as rates (and home prices) rose, so did the cost of buying a home. That pushed on affordability<\/a> and priced some buyers out of the market, so home sales slowed and the inventory<\/a> of homes for sale grew as a result.<\/p>\n

Where Experts Say Rates and Inflation Will Go from Here<\/strong><\/h4>\n

Moving forward, both of these factors will continue to impact the housing market. A recent article<\/a> from CNET<\/em> puts the relationship between inflation and mortgage rates in simple terms:<\/p>\n

\n

\u201cAs a general rule, when inflation is low, mortgage rates tend to be lower. When inflation is high, rates tend to be higher.\u201d<\/strong><\/em><\/p>\n<\/blockquote>\n

Sam Khater, Chief Economist at Freddie Mac<\/em>, has this to say<\/a> about where rates may go from here:<\/p>\n

\n

\u201cMortgage rates remained volatile due to the tug of war between inflationary pressures and a clear slowdown in economic growth. The high uncertainty surrounding inflation and other factors will likely cause rates to remain variable, . . <\/strong>.\u201d <\/em><\/p>\n<\/blockquote>\n

While there\u2019s no way to say with certainty where mortgage rates will go from here, there is something you can do to stay informed, and that\u2019s connect with a trusted real estate advisor. They keep their pulse on what\u2019s happening today and help you understand what the experts are projecting. They can provide you with the best advice<\/a> possible.<\/p>\n

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

Rising inflation and higher mortgage rates have had a clear impact on housing. For expert insights on the latest trends in the housing market and what they mean for you, let\u2019s connect.<\/p>\n

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

\"HowIf you\u2019re following today\u2019s housing market, you know two of the top issues consumers face are inflation and mortgage rates. Let\u2019s take a look at each one. Inflation\u00a0and the Housing Market This year, inflation reached a high not seen in forty years. For the average consumer, you probably felt the pinch at the gas pump [\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":[3,84,85,86,118],"tags":[],"class_list":["post-8144","post","type-post","status-publish","format-standard","hentry","category-blog","category-for-buyers","category-for-sellers","category-housing-market-updates","category-interest-rates"],"_links":{"self":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/posts\/8144","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=8144"}],"version-history":[{"count":0,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/posts\/8144\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8144"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8144"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8144"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}