Inflation is higher now than it has been in years, which is negatively impacting the housing market. Inflation impacts both home prices and mortgage rates. This article lists five tips for buying a house when inflation is rising: buy a house immediately so that you can get today’s price, determine your maximum budget for monthly mortgage and factor in other high costs, branch out and look at smaller homes in less popular areas for lower prices, improve your financial well-being by working on a high credit score and getting a bigger down payment, and give careful consideration into the mortgage loan you choose.
- When inflation rises, house prices rise because home construction then becomes much more expensive.
- Inflation typically will lead to higher mortgage rates because investors price in for inflation premiums.
- Try to buy a house as quickly as you can as the fed is expected to raise prices and interest rates.
“Unfortunately, experts predict inflation will remain high as the year goes on.”