Eying Inflation, Homeowners Do This
Homeowners Race Inflation to Grab Still-Low Rates
LOS ANGELES, Nov. 2, 2021 /PRNewswire/ -- Lendgo-- Overall, the economy can boast of a remarkably fast recovery this year. The stock market is up and job number are up. But so is inflation, so much so that the president of Atlanta's Federal Reserve bank, Raphael Bostic, predicted that the next major interest rate hike could come as soon as 2022.
What does this mean for mortgage rates? In a word: Up. No wonder the popular rate shopping site Lendgo reports a marked increase in users exploring their refinancing options. Securing one of today's low rates prepares homeowners to face inflationary price increases in other areas of life tomorrow.
As of last month, prices in general climbed 5.4% year over year, according to the Bureau of Labor Statistics (BLS). The inflation was led by indexes for food, housing, and gasoline.
Bostic was quoted as saying that "upside surprises in recent data points" indicate an impending spike in interest rates. At the moment, home loan rates, along with credit cards, personal loans, and student loan rates, are near historic lows. But that won't last forever.
Most Federal Reserve members are projecting several interest rate increases by 2023. The Atlantic recently hosted an event where Janet Yellen, current secretary of the Treasury and former chairman of the Fed, suggested increasing rates to curb inflation. She said this would stabilize the economy.
Homeowners, however, should hear that suggestion as a warning: If you want to refinance while rates are still hovering around historic lows, the clock is ticking. More and more homeowners are using the quick, free service Lendgo to see their best refinance options and thinking of themselves as being in a race with inflation. Lowering the cost of your mortgage really helps when the cost of living goes up.
Contact: Lendgo
844-551-6667
Lendgo.com
SOURCE Lendgo
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