This is an excellent time to buy a home. Interest rates are at an all-time low and many experts don’t see them dropping much more. At the same time, inflation continues to rise, although modestly. Putting of the buying process could cost you money.
Mortgage rates reached the lowest point in 50 years last week. The Treasury yield began this week by hitting a record low. And one economist predicted they could plummet even more this week. So should consumers consider locking in a mortgage rate now or, instead, play the waiting game? –Inman.com
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The following are some additional points from Greg Giokas, RMS Mortgage.
Inflation news is always important to monitor because inflation and interest rates are tied very closely together. Inflation is the “arch-enemy” of the Bond market because Bonds have a fixed coupon payment. And if inflation is on the rise, you can no longer buy the same amount of goods that you could previously – Inflation erodes your buying power…
In a rising inflation environment, the end investor has to be compensated with a higher rate to compensate them. It’s because of this that when inflation rises, so too do interest rates, including mortgage rates. Thankfully, inflation has been relatively tame. ~Greg Giokas, Senior Loan Officer, RMS Mortgage, NMLS# 441885