Week 2: How Inflation Impacts Mortgage Rates — What Buyers Need to Know Before Locking In
Inflation isn’t just about higher grocery bills—it also affects how much you’ll pay for your mortgage. When inflation goes up, so do interest rates, because lenders want to make sure the money they lend today retains its value over time.
Here’s why it matters:
- Reduced Buying Power: Higher rates mean higher monthly payments, which can limit the amount of home you can afford.
- Lender Risk: Lenders raise rates to protect themselves from future inflation eating into their returns.
- Faster Decisions: In inflationary periods, acting sooner could mean locking in a lower rate before the next bump.
What you can do: Stay informed and act when rates dip. And remember, your credit score, income, and loan size all influence the rate you’re offered—regardless of the national average.
At Seeking Agents™, we make it easier to find agents who can help you navigate rising rates—and know how to negotiate in today’s climate.
Pro Tip: Don’t just look at rates—factor in home prices and competition too. Sometimes a slightly higher rate today is better than waiting for prices to climb.
Next Week: The Federal Reserve’s Role in Mortgage Rates
*Savings are not guaranteed and depend on market conditions and agent negotiations.
This article is for informational purposes only and does not constitute financial advice.
Always consult with a licensed real estate professional before making any real estate decisions.