Mortgage rates acting spicy, but we've got some cool news for homebuyers like you!
There's no beating around the bush about it. The recent rise in mortgage rates can dampen even the most optimistic homebuyer.
But don't give up just yet! We've got some exciting news --inflation, which is all about prices going up, has actually slowed down! And that's fantastic news for folks like you who are dreaming of owning their own home.
Why is inflation cool-down good news for homebuyers?
As prices rise at a slower pace, it's possible that more pre-existing homes will be listed, and new constructions will begin to ramp up, easing up low inventory.
Actually, we've already seen many locations with new home builds being even more affordable than pre-existing homes!
More on Inflation
In June, the Consumer Price Index, which measures inflation, showed only a 3% increase compared to last year. That's way lower than the whopping 9% surge we experienced last summer. It's the slowest rise we've seen since March 2021, giving us hope that the economy is on the upswing. And get this: the prices of gas, energy, and healthcare services are going down!
The Federal Reserve is keeping a close eye on inflation, aiming for around 2%, not too high, not too low. They've been raising interest rates to keep inflation in check but took a break from increases in June. However, they've hinted at an increase in rates later this year.
This is important because a hike from the Feds could mean a rise in mortgage rates. So if it's too high right now, waiting any longer to lock in your rate could mean an even higher rate later.
So, while mortgage rates might be above 7% right now, keep hope. The slowdown in inflation and the promising signs in the housing market makes this a worthwhile time to consider buying your own home.
Remember, we're here to make it accessible and affordable!