The mortgage market has been on a rollercoaster this week, and if you're planning to buy, sell, or refinance your home, you might be feeling the impact. We’re sharing an update from our trusted mortgage partner, Brooks Kelly of The Mortgage Link, to help you understand the current landscape and plan accordingly. For more detailed updates and ongoing insights, be sure to check out Brooks Kelly’s social media profiles.
Inflation’s Impact on Mortgage Rates
Recent data from the Consumer Price Index (CPI) revealed a 0.5% increase in January—well above the 0.3% predicted by investors and analysts. This surge is largely driven by rising energy and shelter (housing) costs. Although these numbers may seem concerning, the Federal Reserve’s long-term target is still to reduce inflation to 2%. Since shelter data often lags behind real-time figures (like those from CoreLogic), it’s anticipated that once more current data comes in, inflation will begin to subside, potentially leading to a gradual decrease in mortgage rates.
A Week of Volatility
If you’ve been monitoring mortgage rate charts, you might have noticed significant fluctuations over the past week. Conventional mortgage rates briefly dipped into the 6% range before climbing back into the 7% range. In contrast, government-backed loans continue to hold steady in the 6% territory. This volatility highlights the importance of staying informed; sometimes, with a little extra investment (such as paying points), you can secure a lower rate.
What This Means for You
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Homeowners: If you’re considering refinancing, now might be an opportune time to explore government loan options, which remain in the more attractive 6% range. A strategic refinance can help you save money over time, even if conventional rates seem high.
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Homebuyers: For those looking to purchase a home, it’s essential to keep a close eye on market trends. Despite the current fluctuations, there are still opportunities to lock in competitive rates—especially if you’re open to adjusting your loan type or paying a bit more upfront to lower your overall rate.
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Sellers: With mortgage rates in flux, the buying landscape is constantly shifting. If you’re planning to sell, understanding these trends can help you better time your sale and set realistic expectations for potential buyers.
Final Thoughts
While this week’s mortgage market has been unpredictable, it’s important to remember that opportunities still exist for savvy homeowners, buyers, and sellers. As inflation data stabilizes and the Fed continues its efforts to control inflation, we expect mortgage rates to ease over time.
For personalized advice and the latest updates, be sure to follow Brooks Kelly on social media. His insights provide valuable guidance to help you navigate these changing times with confidence.
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Stay informed, plan strategically, and remember: even in volatile markets, there are always ways to make your money work for you.
