"Conventional wisdom" via author J. Scott says that in order to reduce high inflation, the federal funds rate (interest rate that the banks lends money to the government) needs to be higher than the inflation rate. Our mid-June inflation rate was 8.2-8.6%. Normal inflation is within 2-4%. Needless to say, an aggressive hike was needed! After the June 17th .75% hike, the federal funds rate is now 1.58%. This change creates a domino effect causing mortgage rates to increase as well.
Buying a home is typically the largest purchase a person will make in their lifetime. This also makes real estate an easier target for controlling inflation. Raising rates to slow purchasing will discourage more "traditional" buyers by putting a dent in demand as well as affordability. My opinion, we are verging on huge buying opportunities and more situated for "creative acquisitions" scenarios such as: Owner Finance, Lease Option, Contract for Deed....oh these words make my heart skip a beat!
Your real estate professional should be able to not only understand the current market trends, but also identify when these buying techniques are best applicable. Reach out today if you want to schedule a time to discuss your buying, selling, or investing goals with one of our local market experts.