Banks Lend You Money For Free To Purchase A House? For The First Time For Years, Inflation Rates Are Higher Than Mortgage Rates!

Recently, I have been asked by clients, ” Bryant, is it a good time to buy a home when the housing market is so competitive?” Let’s take a look at the perspective of recent inflation. The U.S. Department of Labor reported Wednesday that inflation accelerated at its fastest pace in more than 12 years in April as the U.S. economic recovery kicked in and energy prices jumped.

In other words: For the first time in decades, U.S. inflation rates are higher than mortgage rates.

Low interest rates on bank loans and expansionary monetary policy have been stimulating an economic environment that is in a downward cycle. In fact, the banks are letting the public borrow money for free to buy homes. If people successfully borrow money to buy a house, using the loan leverage to pry the maximum return on assets! This is also the way we ordinary people can maximize the “passive money”!

The consumer price index, which measures the cost of goods as well as energy and housing, rose 4.2% from a year earlier. A Dow Jones survey expects the index to increase by 3.6%. The monthly increase was 0.8 percent, compared with expectations of 0.2 percent.

Excluding volatile food and energy prices, the core CPI increased 3% from the same period in 2020, with a monthly increase of 0.9%. The estimates were 2.3% and 0.3%, respectively.

The annual headline CPI growth rate is the fastest since September 2008, while the monthly increase in core inflation is the largest since 1981.

An important reason for the acceleration is the base effect – a year ago at this time, when the economy was hit the hardest by pandemic and inflation was unusually low.

Federal officials believe the current uptick is temporary and unlikely to affect policy.

(Source: “Inflation speeds up in April as consumer prices leap 4.2%, fastest since 2008” | CNBC.com)

Good news! GPS offers exclusive off-market deals of real estate listings, you don’t have to compete with buyers in the market. If you have any questions or thoughts about buying, selling or renting a home in Seattle, please reach us @ (425) 243-5082, hi@gpsrenting.com,

Or add us on WeChat @ GPSSeattle to talk about your needs!

Wish everyone to stay healthy and the Pandemic will be over soon! GPS Renting is a Seattle Property Management Company.