While inflation peaked in June 2022, the inflation rate is still significantly higher than the Federal Reserve would like to see. That means that they are holding interest rates where they are for the time being, and we need to be prepared for what that entails.
At FHL Texas, we know that high interest rates affect how Americans conduct their financial business. From first-time homeownership to reverse mortgages, our team is here to help you make those important moves. Give us a call to talk more about the impact that current interest rates can make on your decision.
Inflation Has Been Difficult To Tame
Since the start of the COVID-19 pandemic, this country has been struggling with out-of-control inflation. The solution aimed at bringing this under control is an increased interest rate from the Federal Reserve, and when this happens, its effects can be felt in all corners of the financial world. Inflation numbers have come down significantly over the last two years, but things are staying at a level that still concerns the Fed. As long as this stays stubborn, they have signaled that they are inclined to keep the interest rate at or around the current level.
Elevated interest rates can affect your financial decisions, as it makes borrowing more expensive. As this continues, it makes an impact on many different areas, including the purchase or refinancing of a home. Right now, people are staying put in their current mortgages, limiting supply and furthering the problem by keeping prices high.
Stay Ready For Changes In The Market
American have followed changing interest rates like this in quite some time, and it is going to be important to keep an eye on them into the future. You still need to budget accordingly, since inflation has been stubborn and hard to break.
As inflation comes further under control, it is likely that the Fed will eventually ease rates slowly. This way, when you are given an opportunity to refinance at a lower rate it will be a positive surprise.
Let’s Talk About Interest Rates!
The housing market has been tumultuous since the start of the pandemic, and current interest rates are keeping things interesting. There are still opportunities in this market, however, when you know where to look and what to keep in mind.
If it’s time to purchase a home for the first time, or if you are looking to age in place with a HECM loan reverse mortgage, talk to our team. Give us a call at Family Home Loan Texas in Frisco, TX at (214) 447-7575 or request an appointment online!
