Ken Mandich and Complete Realty Team, based in Marietta, GA, have published a new post on mortgage rates that can help home buyers understand the current state of the market. The team has noted an upswell in questions regarding recent updates in the real estate industry, and the post aims to settle any concerns once and for all. Notably, all are welcome to contact the firm directly for more personal assistance.
One of the primary concerns that buyers have today is inflation. Despite the best efforts of the Federal Reserve (and a minor improvement), the inflation rate is still higher than the target many were hoping to achieve. Complete Realty Team explains in their article that this lack of significant progress is what compelled the Federal Reserve to raise the Federal Rate once more. This is also known as the Federal Funds Rate, and it is the interest rate banks pay each other to borrow or lend money in a given period.
The article says, “According to Bankrate, the Fed has hiked interest rates for the tenth time in ten meetings to combat inflation and cool the economy, which has been growing since rebounding from the 2020 coronavirus recession.” They add, “The Fed’s activities do not directly affect mortgage rates, but they do have an impact. Their actions last year contributed to a purposeful downturn in the residential real estate market.”
The firm recognizes that this may not mean much to the average home buyer — especially those who simply want to understand whether it is possible for them to predict where mortgage rates are headed. This is important as it can inform their current and future purchasing decisions, especially given the amount of money a ‘minor’ difference in rates can represent.
To answer this, Complete Realty Team says mortgage rates will typically correspond with inflation. As such, high inflation means higher mortgage rates, and experts similarly expect mortgage rates to slow down as well if inflation is successfully controlled. This is why many support the Federal Reserve’s efforts. There may be some issues with the current administration’s strategy, the company clarifies, and it remains to be seen whether their focus on ending fossil fuel dependence will bear fruit.
The firm also assures the community that mortgage rates are expected to cool eventually alongside consumer price inflation. While this will take some time, the average home buyer can stay up to date with the latest turns in the industry by getting in touch with such parties. In Marietta, GA, Complete Realty Team is one such expert, and they invite all interested parties to reach out if they have any further concerns or want expert guidance on upcoming purchase decisions.
The article clarifies, “Don’t be perplexed by the recent Federal Reserve decision. What happens to mortgage rates is determined by the rate of inflation. Mortgage rates will fall if inflation cools off, but will go up if inflation continues. Our take — rates are probably going to go up with the Fed already hinting at raising rates at least one more time this year. The last stat we saw is that inflation was at 3.2% with their target being 2%."
Complete Realty Team, as their name suggests, is able to provide guidance to people in every position of the real estate industry. This means they are equally capable of working in the best interests of buyers and sellers alike, and this dual-sided capability is partly what enables the team to accurately weigh every available option on behalf of their clients.
The other reason is the firm’s team lead, Ken Mandich, who wields a combination of long experience in the real estate industry and a deep understanding of digital marketing (especially with a focus on real estate). Anyone who wishes to benefit from his insights (or his team’s), get more real estate news and so on may get in touch via phone or email today.
The team is available to provide assistance at every point of a real estate transaction, and they welcome all inquiries from the community. Further details regarding their services can be found on the official Complete Realty Team website.
For more information about Complete Realty Team, contact the company here:
Complete Realty Team
Complete Realty Team
1642 Powers Ferry Rd #150
Marietta, GA 30067