Breaking: Inflation Creeps Up Again -Will This Affect Future Mortgage Rates?
Hot topic alert: The US inflation rate increased last month --the first time it's risen in 12 months. Housing expenses were the primary factor, along with slightly higher food prices.
It's worth noting that despite the increase, inflation remains below last year's peak of 9.1%, hinting that the Federal Reserve's efforts to cool the economy through interest rate hikes are indeed helping.
Currently, Federal Reserve's benchmark interest rate is 5.25%. They reached this number after 11 consecutive increases since March 2022 --the highest level in 22 years.
For potential homebuyers, this suggests relatively higher mortgage rates will likely endure. The ongoing inflation battle could mean that the Feds are unlikely to drop rates anytime soon. They may even increase it!
While the Federal Reserve doesn't directly control mortgage rates, its decisions influence investors and, subsequently, mortgage rates
As you explore the housing market, staying informed about economic trends like these can help you make informed decisions about when to buy.
If you've been on the fence about purchasing due to current rates, waiting may not be in your best interest. Stay informed and give us a call to discuss the most affordable options!