Andrew R Harmon - Branch Manager

𝗧𝗼𝗱𝗮𝘆 𝘄𝗲 𝗿𝗲𝗰𝗲𝗶𝘃𝗲𝗱 𝘁𝗵𝗲 𝗖𝗣𝗜 𝗿𝗲𝗽𝗼𝗿𝘁, 𝘄𝗵𝗶𝗰𝗵 𝘁𝗲𝗹𝗹𝘀 𝘂𝘀 𝘄𝗵𝗮𝘁 𝗶𝘀 𝗵𝗮𝗽𝗽𝗲𝗻𝗶𝗻𝗴 𝘄𝗶𝘁𝗵 𝗶𝗻𝗳𝗹𝗮𝘁𝗶𝗼𝗻. When inflation is high so are mortgage rates… 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 you’ll see that we didn’t see a spike in rates.

𝗪𝗵𝘆?

My opinion is because Wall Street sees real time info and knows that energy, gas, etc. is actually lower this month.

𝗗𝗼𝗲𝘀 𝘁𝗵𝗮𝘁 𝗺𝗲𝗮𝗻 𝘄𝗲 𝗽𝗼𝘀𝘀𝗶𝗯𝗹𝗲 𝗵𝗮𝘃𝗲 𝗽𝗲𝗮𝗸𝗲𝗱 𝗶𝗻 𝗿𝗮𝘁𝗲𝘀 𝗮𝗻𝗱 𝘁𝗵𝗲 𝘄𝗼𝗿𝘀𝘁 𝗶𝘀 𝗼𝘃𝗲𝗿?

It’s way too early to tell and it will take several months of better reports to know when we’re out of the woods, but for now we dodged a bullet and will NOT see rates moving higher today.

𝗪𝗵𝗮𝘁 𝗮𝗯𝗼𝘂𝘁 𝘁𝗵𝗲 𝗥𝗘𝗖𝗘𝗦𝗦𝗜𝗢𝗡 𝗲𝘃𝗲𝗿𝘆𝗼𝗻𝗲 𝗸𝗲𝗲𝗽𝘀 𝘁𝗮𝗹𝗸𝗶𝗻𝗴 𝗮𝗯𝗼𝘂𝘁?

I can’t tell you how bad or how long we’ll 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.

𝗜𝗡 𝗘𝗡𝗚𝗟𝗜𝗦𝗛: 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 haven’t found a house yet just in case next month’s report comes in even worse and triggers rates to jump. In the long term I think we’ll have a mild recession with rates eventually coming back down and housing prices continuing to climb… 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.