Have you ever wondered how exactly inflation impacts the housing market? Not surprisingly, they are connected. Whenever there are changes to one, both are affected. Today is a high-level overview of the connection between the two.
Shelter inflation is the measure of price growth specific to housing. It comes from a survey of renters and homeowners that’s done by the Bureau of Labor Statistics. The survey asks renters how much they’re paying in rent, and homeowners how much they’d rent their homes for, if they weren’t living in them.
So, what does all of this mean for you? While the actions coming out of the Fed don’t determine mortgage rates, they do have an impact. While no one can predict the future for mortgage rates exactly, it’s encouraging to see the signs of moderating inflation in the economy.
In the Maine real estate market we have seen signs that inventory is increasing and price are moderating. If you are thinking of buying or selling now or in the future, let’s find time to talk.
Until next time … Imagine More!
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About the Author: Michael
