RISMedia
Indicators from all sides affect the housing market. Increasing inflation, in fact, can drive up mortgage rates—but at what pace will it prove harmful?
A recent Outlook from Freddie Mac projects three outcomes for inflation—higher, lower, or stable—and each outcome’s effect on housing.
A case of higher inflation would be detrimental to the housing market, according to the Outlook, with both home sales and mortgage originations negatively impacted due to a swift rise in interest rates.
A case of lower inflation, however, would be beneficial, especially for homebuyers on the sidelines due to too-high home prices.
