$\"How$ <\/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>\nOver 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>\nMoving 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<\/div>\n\n<\/body>","protected":false},"excerpt":{"rendered":"
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