07/14/2022
๐ง๐ผ๐ฑ๐ฎ๐ ๐๐ฒ ๐ฟ๐ฒ๐ฐ๐ฒ๐ถ๐๐ฒ๐ฑ ๐๐ต๐ฒ ๐๐ฃ๐ ๐ฟ๐ฒ๐ฝ๐ผ๐ฟ๐, ๐๐ต๐ถ๐ฐ๐ต ๐๐ฒ๐น๐น๐ ๐๐ ๐๐ต๐ฎ๐ ๐ถ๐ ๐ต๐ฎ๐ฝ๐ฝ๐ฒ๐ป๐ถ๐ป๐ด ๐๐ถ๐๐ต ๐ถ๐ป๐ณ๐น๐ฎ๐๐ถ๐ผ๐ป. When inflation is high so are mortgage ratesโฆ when it starts coming down we should see rates follow. Today inflation came in at 9.1% which is up from 8.6% last month. This was way worse than experts predicted, however if you take a look at the chart below youโll see that we didnโt see a spike in rates.
๐ช๐ต๐?
My opinion is because Wall Street sees real time info and knows that energy, gas, etc. is actually lower this month.
๐๐ผ๐ฒ๐ ๐๐ต๐ฎ๐ ๐บ๐ฒ๐ฎ๐ป ๐๐ฒ ๐ฝ๐ผ๐๐๐ถ๐ฏ๐น๐ฒ ๐ต๐ฎ๐๐ฒ ๐ฝ๐ฒ๐ฎ๐ธ๐ฒ๐ฑ ๐ถ๐ป ๐ฟ๐ฎ๐๐ฒ๐ ๐ฎ๐ป๐ฑ ๐๐ต๐ฒ ๐๐ผ๐ฟ๐๐ ๐ถ๐ ๐ผ๐๐ฒ๐ฟ?
Itโs way too early to tell and it will take several months of better reports to know when weโre out of the woods, but for now we dodged a bullet and will NOT see rates moving higher today.
๐ช๐ต๐ฎ๐ ๐ฎ๐ฏ๐ผ๐๐ ๐๐ต๐ฒ ๐ฅ๐๐๐๐ฆ๐ฆ๐๐ข๐ก ๐ฒ๐๐ฒ๐ฟ๐๐ผ๐ป๐ฒ ๐ธ๐ฒ๐ฒ๐ฝ๐ ๐๐ฎ๐น๐ธ๐ถ๐ป๐ด ๐ฎ๐ฏ๐ผ๐๐?
I canโt tell you how bad or how long weโll be in one, but what I can show you is the historic behavior of rates and home values after every recession in the last 50 years. If you look at the charts you can see that the future looks great when we eventually come out of this, which would give all of the people buying homes right now at higher rates the opportunity to refinance and lower their payments.
๐๐ก ๐๐ก๐๐๐๐ฆ๐: When we saw super high inflation we thought we were screwed, but when the dust settled nothing major actually happened. I would take advantage of the LOCK AND SHOP option that we offer buyers who havenโt found a house yet just in case next monthโs report comes in even worse and triggers rates to jump. In the long term I think weโll have a mild recession with rates eventually coming back down and housing prices continuing to climbโฆ just not at an insane pace.
Of course if you have any questions just message me to see what options you have when buying or refinancing.
