You may have heard that inflation is on the rise – and that’s important because inflation drives interest rates.
You see, inflation erodes the buying power of the fixed return that a mortgage holder receives.
So, in order to be compensated for that more rapid rate of erosion, interest rates oftentimes rise. This means that over the summer, we could see a rise in mortgage rates. That’s why now could be an opportune time for you to buy a home before a potential rise in rates later this year.
This is also why it may be worthwhile to bid a little more on a home today to ensure your offer is accepted, rather than waiting and ending up with a little bit higher interest rate.
Let me help you with your mortgage needs so you can close on the perfect home for your family. Call me today at (515) 238-9949 and let’s get started.
You can also email me with any questions you have.