How Inflation Affects Mortgage Rates

How inflation affects mortgage rates

Housing market news often mentions “The Fed” aka The Federal Reserve.

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The Fed is trying hard to reduce inflation.

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Though we’ve had 12 straight months of inflation reduction, it’s still higher than the Fed’s target of 2%.

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While you may hope The Fed stops their hikes, they don’t want to stop too soon and risk inflation climbing back up.

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“We remain committed to bringing inflation back to our 2 percent goal and to keeping longer-term inflation expectations well anchored.”

-Jerome Powell, Chairman of the Fed

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When inflation is high, mortgage rates are also high.

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If The Fed succeeds in bringing down inflation, it leads to lower mortgage rates, making it more affordable for you to buy a home.

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Buying + Selling in Nashville?

Wendy Monday • Broker

PARKS Real Estate

@wendymondaysellingnashville

💻 www.wendymonday.com

📧 wendy@wendymonday.com

📞615.642.1313

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