Recent news of June inflation coming in at 9.1%, the highest in 40 years, definitely wasn’t the news we wanted or planned for when we brought in the year 2022.
The question on most peoples minds is, “should I buy a home right now?”
Of course, it depends on your financial situation and what your needs are. Despite the rates, home prices, and all of the noise, for first time homebuyers the fundamental question always remains, “do you want to pay down your mortgage, or someone else’s?”
In the short term, there’s another factor looming; the FED will meet at the end of the month. In that meeting experts are anticipating an increase in rates to curb the 9.1% inflation number from this weeks’ CPI report. Experts say that number is largely due to gas prices in June, as you can see in the table below (source: US Bureau of Labor Statistics).
There is silver lining to all of this; based on the gas prices we’re seeing in July, experts say we can expect the inflation percentage to decrease in next months’ CPI report. One interesting fact to note in the table is the sudden gas and fuel shift in the month of March, which forced the FED to take extreme and swift action. Since we’ve seen another double digit jump, with an anticipation of another rate hike, the hope and expectation is in August’s report that number will go South like it did in April.
With Freddie Mac reporting a rise of the 30-year rate to 5.51% (from 5.30% last week), and an expectation for rates to go up in a couple of weeks, the extremely short term the answer is yes. Not now, but RIGHT NOW, is a good time to buy and lock in a lower rate if you have the means to do so.
Those able to purchase in the near short term have the biggest selection of homes in Pierce County we have seen since the 3rd quarter of 2019! As of July 13th, Pierce County is holding 1.6 months of inventory of homes based on pended sales. (NWMLS)
Email an Abode broker for more information or drop us line in the chat!