What does Inflation Mean for a Homeowner?  

For a homeowner, understanding inflation can help you make the best decisions on when to buy or sell a home. 

Inflation is measured by different economic indicators such as the Consumer Price Index (CPI). Generally speaking, inflation refers to an increase in the prices of goods and services over time. As inflation rises, it takes more money to buy the same items. This can lead to a decrease in purchasing power for individuals and businesses. 

When inflation is high, home prices tend to also rise, and your home may be gaining equity, which is the difference between the current market value of your home and the amount you owe on your mortgage. This means that it may be a great opportunity to pull out cash through a cash out refinance or a home equity line of credit to reinvest into other real estate opportunities. 

When inflation is low, it is generally a good time to buy a home. Mortgage rates are typically lower and home prices may not increase significantly. Low inflation also means more purchasing power for individuals and businesses, which could mean more money to buy a home.  

It's important to understand inflation when considering whether to buy a home. High inflation can mean that the cost of owning a home will increase over time, while low inflation could indicate that a home purchase is a good investment. Be sure to do your research and consult with one of our loan advisors to gain a clearer understanding of the current state of the housing market and how that relates to your unique situation if you are a homeowner. 

Give us a call today at 949-243-7900 so we can help you navigate your real estate investment decisions and provide you with the best mortgage and financing options available to continue to grow your real estate investment through leverage opportunities. The best investors prepare ahead of time, and we are here to help!