Marietta, Georgia -
Complete Realty Team, based in Mariette, GA, has published new materials that explore the connection between rates and inflation in the real estate industry. In addition to a comprehensive blog post on the subject, the team has also shared a video (part of a larger series) that illustrates what signs homebuyers should be looking out for and what actions they may take today.
Those who are interested in purchasing a home in the near future are likely to be watching mortgage rates as this will have a direct impact on their budget. The article notes that home buyers are justifiably concerned with what they can afford, and this in turn means they will be looking for the best ways to track — or even predict — how mortgage rates will fluctuate over the course of the coming year. The best way to make use of this information is to consult with an expert, but the company says there are still ways for the average home buyer to help themselves.
According to Complete Realty Team, it can be helpful to keep certain factors in mind, such as the path mortgage rates have historically taken. Similarly, given the influence inflation has on mortgage rates, tracking this variable can also provide insight on where mortgage rates may be in the future.
As Ken Mandich of Complete Realty Team notes in ‘How Inflation Impacts Mortgage Rates,’ a video that was posted to accompany the article, home buyers essentially want to know when rates will come back down to appreciable levels. “Now, I found something that might give us a little bit of hope that rates might come down sometime in the future,” he says,” as well as what I think is going to happen in the next year, as far as mortgage rates go. Historically, there’s been a tie between inflation and 30-year fixed rate mortgages.”
However, home buyers should note that this is not expected to happen immediately. In fact, mortgage rates may get worse before they start to show improvement again. “Honestly, I don’t think they’re done rising yet,” says Mandich. “Rates could get to 8% or maybe even higher by the end of the year, and I really don’t expect to see any relief until, hopefully, by the first of next year.”
Mandich notes that inflation itself is affected by numerous other factors. While it is generally impossible for most people to track all of these variables, some are sizable enough that changes in the relevant markets can be expected to impact inflation almost instantaneously. One of these factors is the price of crude oil, which has been rising in recent times. Should it continue on this trend, Mandich says inflation is likely to continue as well.
Crucially, Mandich’s advice is for home buyers to avoid trying to ‘time the market.’ While it is possible to theorize on the future state of the market, he points out that no one is actually able to make predictions with reliable accuracy. However, based on his own experience, he expects home prices to rise for now, and rates are likely to do the same. This means that buyers who delay a purchase may find themselves dealing with higher expenses down the road — or even be priced out of the market entirely.
“If you lock in a rate now, you can always refi when, and if, rates do come down,” he remarks, advising home buyers not to wait if they have found their perfect home. The longer they wait, the higher their risk of missing out on certain opportunities, even if the market will indeed be more favorable in the future. However, should they take the leap today, they can make sure they have the home they want, avoid the pitfalls of a potentially more unpalatable market and still refinance to take advantage of improvements that do appear.
https://www.youtube.com/watch?v=pUIUZPvgQqQ
More information for homebuyers can be found in the full video as well as Complete Realty Team’s in-depth article. Home buyers may also wish to take a look at the other videos in the Info For Buyers video series, which is available for free. On the other hand, those who would like to utilize the comprehensive assistance of an expert in the field are welcome to contact Complete Realty Team to discuss their home ownership goals.
Source:
Connection Between Mortgage Rates And Inflation Revealed By Complete Realty Team
