If you're in the process of buying or selling a home, it's important to understand how inflation and mortgage rates can impact your bottom line. While there are a number of online resources that can provide some insights, working with the best estate agents Apple Tree North Bothell is always the best way to get the most accurate and up-to-date information.
A successful real estate agent Bothell understands that inflation is the rate at which prices for goods and services rise over time. In the United States, the Bureau of Labor Statistics tracks inflation using what's known as the Consumer Price Index (CPI). The CPI looks at the prices of a "market basket" of more than 200 items, including food, housing, transportation, and medical care.
The CPI is used to calculate the "inflation rate," which is simply the percentage change in prices from one year to the next. For example, if the CPI was 100 in 2016 and rose to 102 in 2017, that would be an inflation rate of 2%.
How Inflation Affects Homeownership
While a small amount of inflation is actually good for the economy—it encourages spending and investment—too much inflation can be detrimental. When prices for everyday items like food and gas go up too quickly, it's called "cost-push inflation." This can cause people to cut back on spending, which can lead to a decrease in economic activity and higher unemployment.
In addition to impacting consumer confidence and spending levels, inflation can also contribute to higher mortgage rates. When inflation is on the rise, interest rates tend to follow suit. That's because when prices are going up, lenders want to be compensated for the loss in purchasing power (i.e., what their money will buy in the future). And if you’re in dire need to buy a house during this time, better seek the advice of a successful real estate agent Bothell .
Similarly, when mortgage rates increase, home prices usually go up as well. That's because when buyers are faced with higher borrowing costs, they're willing to pay less for a home. As a result, sellers have to adjust their asking prices downward in order to attract buyers.
If you're buying or selling a home, it pays to stay on top of changes in inflation and mortgage rates. While there are plenty of online resources that can provide some insights, working with best estate agents Apple Tree North Bothell is always the best way to get accurate and up-to-date information that's specific to your situation.
If you’re planning on buying a house, Darren and Gwen Munson, the best realtors in Bothell, are the people to go. With years of experience in the area, you can relax and let them do the tough grind. Since they know the Bothell real estate market well and they have all the connections to help you purchase your dream house , all you need to do is contact them. For scheduling and consultation visit our website at www.munsonhomes.com or call us at 425-338-9400 .
GMB LINK: https://g.page/darrengwenmunson?share