With another dismal inflation report in for June, homebuyers and sellers continue to face the harsh reality that home prices — which were cued to cool down this year — might not slow for some time. The question for house hunters now: Should you wait out this period of elevated prices?
Analysts were all but certain inflation would come in hotter year-over-year in June, and they weren’t disappointed: The headline number surged to 9.1 percent last month compared to 8.6 percent in May, affecting everything from what you pay at the pump to the cost of housing. That includes mortgage rates, which were on track to 6 percent in June, but recently retreated to the mid-5s.
To bring inflation back to Earth, the Federal Reserve has been steadily raising rates — three times so far this year, with another hike set for the end of July. Those actions have indirectly influenced mortgage rates.
