Inflation and Mortgage Rates
The current inflation situation is probably in your everyday conversations and, unfortunately, the latest data shows that the inflation rate is still on the rise. This is obviously having a direct effect on the population, especially at the gas pump and grocery store, but what does it mean for the housing market? According to the Chief Financial Analyst at Bankrate, Greg McBride, “Inflation will have a strong influence on where mortgage rates go in the months ahead. Whenever inflation rates finally start to ease, so will mortgage rates.” And while the future of mortgage rates aren’t entirely clear at this point, that doesn’t mean you should halt your home search.Outlook on Home Prices
In an inflationary economy, prices rise for pretty much everything, from groceries to houses. Experts predict that home prices will not drop anytime soon. In fact, they are expected to rise at a slower pace than they have in recent years, but they continue to be on the up and up. In the same regard, rent prices will continue to rise as families seek to re-sign a lease or find a new rental space. The one thing that can lock-in your highest monthly bill (rent/mortgage) is by securing a fixed mortgage payment for the duration of your loan. The two best things about this are 1. No one can raise your monthly payment for your home sweet home. 2. Your home value will rise with inflation, gaining you equity. Investing in a tangible asset will assist in shielding you from inflation.Are you interested in learning about your options or are their unique obstacles that you feel might block your way to homeownership? As market experts in eastern North Carolina, Castro Real Estate Team is happy to help you sort through those road blocks. We will always give you our honest opinion and never push you to make a decision that wouldn’t be for your absolute best interest. If you find yourself curious about potential options, give us a call! We’d be happy to chat.