If you’re reading headlines about inflation or mortgage rates, you may see something about the recent decision from the Federal Reserve (the Fed) But what does it mean for you, the housing market, and your plans to buy a home? Here’s what you need to know
While the Fed’s working hard to lower inflation, the latest data shows that, while the number has improved some, the inflation rate is still higher than the target (2%). That played a role in the Fed’s decision to raise the Federal Funds Rate last week. As Bankrate explains:
“Keeping its inflation-fighting streak alive, the Federal Reserve has raised interest rates for the 10th time in 10 meetings . . . The hikes aimed to cool an economy that was on fire after rebounding from the coronavirus recession of 2020.”
While the Fed’s actions don’t directly dictate what happens with mortgage rates, their decisions do have an impact and contributed to the intentional cooldown in the housing market last year
During times of high inflation, your everyday expenses go up. That means you’ve likely felt the pinch at the gas pump and in the grocery store. By raising the Federal Funds Rate, the Fed is actively trying to lower inflation. If the Fed is successful, it could also ultimately lead to lower mortgage rates and better homebuying affordability for you. That’s because when inflation is high, mortgage rates tend to be high. But, as inflation cools, experts say mortgage rates will likely fall.
Don’t let headlines about the latest decision from the Fed confuse you. Where mortgage rates go from here depends on what happens with inflation. If inflation cools, mortgage rates should tick down as a result.
Moving forward, both inflation and mortgage rates will continue to impact the housing market And as Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:
“Mortgage rates are likely to descend lower later in the year as the consumer price inflation calms down..."
Mike Fratantoni, Chief Economist at the Mortgage Bankers Association (MBA), explains:
“We continue to expect that mortgage rates will drift down over the course of the year as the economy slows..."
While there’s no way to say with certainty where mortgage rates will go from here, the experts think mortgage rates will trend down this year if inflation comes down too To stay informed on the latest insights, connect with a trusted real estate advisor They keep their pulse on what’s happening today and help you understand what the experts are projecting and how it could impact your homeownership plans
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From edible landscapes to meandering garden paths, here's how to decorate your outdoor space.
1. Edible Landscapes. One trend HGTV star and interior designer Shay Holland has seen her clients ask for is edible landscapes " Holland says that edible landscapes don't just create extra food, but they also cultivate joy and a sense of accomplishment. “Whether it’s a collection of gorgeous herb pots, raised vegetable beds on a rooftop, or vertical plantings on a wall, people are getting back in touch with nature and maybe even beating grocery store inflation ”
2. Curved Furniture. From sofas to chairs and even tables, curved furniture has been a major interior design trend in recent years. It’s fresh, modern, and visually interesting. Now, this look has made its way to outdoor furniture, Kate Anne Gross of Kate Anne Designs says. “We love using curved back chairs for outdoor dining and entertaining Not only are they easier to walk around, but they soften the overall look of the space and add interest to a hard line of a yard," she explains
3. Meandering Garden Pathways. Gross is also gearing up for meandering garden pathways to be big in 2023 This not only brings on the charm, but it can make any garden or backyard feel truly unique. “Pathways allow you to explore your garden through a different lens and soften the space, while also making it interesting and beautiful," she says
4. Layered Lighting. Having proper lighting makes your backyard, porch, or patio a more comfortable place to be for dinner parties or impromptu late-night drinks. Lights also make larger spaces safer, especially for kids “Back, up, down, string, and floodlighting give a high-end, tiered look It also adds a beautiful evening glow while the rest of the garden isn't able to be in full view,” Gross explains String lights are also incredibly inexpensive and easy to install yourself
5. Outdoor "Rooms". Gross likes to create “rooms” within a yard where kids can play “We like to create moments throughout a property where each area is functional, stylish, and curated If you have a larger outdoor space, divide the yard into zones dedicated for different activities or purposes, such as outdoor entertaining or an area for the kids to play.
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