While Federal Reserve is working hard to reduce inflation, the latest data show that the inflation rate is still rising. You're no doubt feeling the squeeze on your wallet at the gas pump or supermarket, but this news may also leave you wondering: should i still buy a house now?

Greg McBride, chief financial analyst at Bankrate, explains how inflation is affecting the real estate market:

"Inflation will have a strong influence on the evolution of mortgage rates in the coming months. . . . Whenever inflation finally starts to ease, so do mortgage rates - but even then, house prices are still subject to demand and very tight supply."

Nobody knows how long it will take to bring down the inflationand this means that future trajectory of mortgage rates is also unclear. While this uncertainty is not comfortable, here's why both inflation and mortgage rates are important to you and your property plans.

When you buy a house, the mortgage rate and the price of the house are important. Higher mortgage rates affect how much you'll pay for the monthly mortgage payment - and this directly affects how much you can comfortably afford. And while there's no denying that it's more expensive to buy and finance a house this year than last, that doesn't mean you should put your search on hold. Here's why.

Home ownership has historically been a great hedge against inflation

In an inflationary economy, prices rise across the board. Historically, home ownership is a great protection against these rising costsThis is because you can lock in what is probably your biggest monthly payment (your mortgage) for the duration of your loan. This helps stabilize some of your monthly expenses. Not to mention that, as house prices continue to appreciate, so does the value of your home. That's why Mark Cussen, financial editor at Investopedia, says:

"The real estate market is one of the time-honored inflation hedges. It's a tangible asset, and these tend to maintain their value when inflation reigns, unlike paper assets. More specifically, as prices rise, so do property values."

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What's more, the market isn't driving a movement for homes to lose value. As Selma Hepp, deputy chief economist at CoreLogic, says:

"The current rate of house price growth is unsustainable, and higher mortgage rates, coupled with more stock, will lead to slower house price growth, but unlikely house price declines".

In short, your search for a home doesn't have to be put on hold because of rising inflation or higher mortgage rates. There's more to consider when it comes to why you want to buy a house. In addition to protecting itself from the impact of inflation and increasing your wealth Through continued price appreciation, there are other reasons to buy a house now, such as meeting your changing needs and much more.

[mpc_alert font_color="#ffffff" background_color="#2eabbf" padding_divider="true" padding_css="padding-left:20px;"]See an article with more arguments:  What does an economic slowdown mean for the real estate market?[/mpc_alert][mpc_icon_column title_font_color="#e4246c" title="Summary" title_margin_css="margin:5px;" mpc_icon__mpc_tooltip__border_divider="true" mpc_icon__mpc_tooltip__padding_divider="true"]Owning a property is one of the best decisions you can make in an inflationary economy. You get the added security of owning your home at a time when experts are predicting that prices will continue to rise.[/mpc_icon_column]

Any doubts?

Now that you know how the experts see inflation and house prices behaving in the United States, you can consider investing in vacation homes in Orlando. To make the most of all the tips we've given you and go even deeper, you can talk directly to our relationship agents. They are always happy to talk to you to answer any questions you may have about investing in Florida.

In this article, we've covered the topic of the behavior of the real estate market during recessions because it's interesting for those looking to invest in Florida. If you would like to read more content like the one in this article, just stay tuned to our blog.

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