Barbee Dream Homes ~ Real Estate Group, LLC
Barbee Dream Homes Real Estate Group, LLC


If you’re following today’s housing market, you know two of the top issues consumers face are inflation and mortgage rates. Let’s take a look at each one.

Inflation and the Housing Market

This year, inflation reached a high not seen in forty years. For the average consumer, you probably felt the pinch at the gas pump and in the grocery store. It may have even impacted your ability to save money to buy a home.

While the Federal Reserve is working hard to lower inflation, the August data shows the inflation rate was still higher than expected. This news impacted the stock market and fueled conversations about a recession. It also played a role in the Federal Reserve’s decision to raise the Federal Funds Rate last week. As Bankrate says:

“. . . the Fed has raised rates again, announcing yet another three-quarter-point hike on September 21 . . . The hikes are designed to cool an economy that has been on fire. . .”

While their actions don’t directly dictate what happens with mortgage rates, their decisions have contributed to the intentional cooldown in the housing market. A recent article from Fortune explains:

“As the Federal Reserve moved into inflation-fighting mode, financial markets quickly put upward pressure on mortgage rates. Those elevated mortgage rates . . . coupled with sky-high home prices, threw cold water onto the housing boom.”

The Impact on Rising Mortgage Rates
Over the past few months, mortgage rates have fluctuated in light of growing economic pressures. Most recently, the average 30-year fixed mortgage rate according to Freddie Mac ticked above 6% for the first time in well over a decade (see graph below):



The mortgage rate increases this year are the big reason buyer demand has pulled back in recent months. Basically, as rates (and home prices) rose, so did the cost of buying a home. That pushed on affordability and priced some buyers out of the market, so home sales slowed and the inventory of homes for sale grew as a result.

Where Experts Say Rates and Inflation Will Go from Here

Moving forward, both of these factors will continue to impact the housing market. A recent article from CNET puts the relationship between inflation and mortgage rates in simple terms:

“As a general rule, when inflation is low, mortgage rates tend to be lower. When inflation is high, rates tend to be higher.”

Sam Khater, Chief Economist at Freddie Mac, has this to say about where rates may go from here:

“Mortgage rates remained volatile due to the tug of war between inflationary pressures and a clear slowdown in economic growth. The high uncertainty surrounding inflation and other factors will likely cause rates to remain variable, . . .”

While there’s no way to say with certainty where mortgage rates will go from here, there is something you can do to stay informed, and that’s 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. They can provide you with the best advice possible.

Bottom Line

Rising inflation and higher mortgage rates have had a clear impact on housing. For expert insights on the latest trends in the housing market and what they mean for you, let’s connect.

    Joe Barbee - MRP, ABR, SFR
  Broker/Owner
  Barbee Dream Homes Real Estate Group

  478-978-3428 ~ Direct Line
  478-919-2165 ~ Office 
  www.FindHomesInWarnerRobins.com
  www.Facebook.com/BarbeeDreamHome

What our clients are saying  

Barbee Dream Homes did an excellent job selling our church’s rental home. They work hard to get your home sold. They are great with communication, advice and care about their sellers. I would recommend them without hesitation. If you need your home sold, you can trust them to give all they have on your behalf!

 

~ Craig Ruesch

I have known Joe for around 8 years or more. He has always been a man of integrity and runs his real estate team the same way. It was a no brainer when we went to purchase our home to use Joe & Jenny.

 

~ Michelle Griffin

Joe and Bob had our house closed within a month of getting it on the market. They're super quick about returning calls and messages and really took care of us. They're also laid back, which helps uptight people like me :)

 

~ Melanie Hazen

Joe made my first home buying experience unforgettable!! His dedication, integrity, and honesty are unmatched! The process was smooth and we got what we wanted. When I choose to buy again, the Barbee team will be my resource! Thank you Joe!!

 

~ Crystal Marie

So thankful for the hard work and dedication to get our house sold. They are honest, knowledgeable and great to work with.

 

~ Refuge Church

Awesome source for your real estate needs. Was very easy dealing with and informative.

 

~ Andrew Herndon

The Barbee Dream Team has truly been amazing. Every time I called and wanted to look at something or had a question they were there and available to help us. They have outstanding knowledge and compassion about the job which made this experience so amazing.

 

~ Alex Behling

Joe has been are buying agent for 2 homes. No question he has earned his commission before, during, and after our purchases. Without his hard work we could have never gotten our 2nd house, and on top of that his referrals to various contractors has saved us thousands of dollars.

 

~ James Rivers

The Barbee Dream Homes Team rented our investment property in no time. We are looking forward to investing more money in the Warner Robins area and The Barbee Dream Homes Team will be our exclusive agent. Thanks for a job well done.

 

~ Sandy Camp

Most trustworthy, hardworking, and knowledgeable agents in the middle GA area! I would not go through any other team BUT them! If you worried about who you can trust and who is going to work the hardest for you, let me put your mind at ease and refer you to The Barbee Dream House Team!!! Joe and Jennifer will work their hardest for you!

 

~ Lindsay Thrasher

By far the best agents I've ever used. Great service. They go above and beyond to exceed needs. Very professional and knowledgeable.

 

~ Kathy Jarzynka

We have worked with Joe on several occasions. He recently sold one of our rental houses for us. He was also the one we bought the home from as well as another rental house that we purchased with his help. Joe has always been honest and extremely helpful. I remember one time we were looking at a house and he told us we could look but that he wouldn't let us buy this house because it had too many problems and wasn't worth buying. He was very good at the negotiations and always had our best interest in mind. We recommend he all the time when we hear someone needs a realtor!

 

~ Pam Cliffe

Joe is very honest and hard working. When I purchased my first home he took care of everything made sure my family settled in to a nice house at an affordable price.

 

~ Aaron Meredith

I could not ask for a better Realtor than Joe Barbee. He is the most honest and trustworthy person I have dealt with. He never made us feel pressured to make an offer. It was a GREAT buying experience and we are so happy in our the home he helped us purchase!! He returned every call we made to him and was available ANY time we wanted to view a listing. I will use him again and I recommend him to everyone I know looking to buy or sell.

 

~ Chrissy Todd

Joe always returned my phone calls and emails promptly which was extremely important to me as I had dealt previously with a realtor who was not very responsive. He was very flexible with the times he was available to show me houses. He's very friendly, laid back and approachable.

 

~ Jessica Gaskins

Joe Barbee is our hero! He is very straight-forward about a house's assets and sort-comings and never tried to "sell us ON a house", but instead searched high and low for the perfect home for our needs, desires, and price, so that THE HOUSE sold ITSELF to us. His diligence and dedication continue to amaze us. Our lengthy circumstances presented him with numerous challenges and obstacles in the selling of our home and the purchase of another. But he hung in there with us from start to finish. Every issue that arose was handled quickly and professionally, and usually before we even knew there was a problem! I would definitely recommend Joe Barbee to anyone looking to buy or sell real estate in Middle Georgia. We are extremely satisfied customers.

 

~ Domino Persson

Working with Joe was fantastic. He really took the time to ensure our needs were met. I have never seen anyone work harder to get the job done right and in a timely manner. Plus, his demeanor was so easy going that I truely felt that I was talking to an old friend. I would recommend him, without reservation to anyone in need of his skills.

 

~ Rachel Benton

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