Stories of inflation are now a daily thing in the media world. It is a self-evident fact to anyone who regularly makes a repeat purchase. Because it affects the cost of everything it effects the price we pay for anything. So, we are all interested in the topic. The major player in US economy in controlling inflation is The Federal Reserve. It has 5 areas of responsibility, but number one is promoting maximum employment and stable prices. This is from the Federal Reserve History.org,
“The Federal Reserve seeks to control inflation by influencing interest rates. When inflation is too high, the Federal Reserve typically raises interest rates to slow the economy and bring inflation down. When inflation is too low, the Federal Reserve typically lowers interest rates to stimulate the economy and move inflation higher.”
With the rate of inflation the highest since the 1980’s, anyone old enough to remember interest rates from then recalls them being in the double digits. (Mortgage rates got up to 18% plus.) Not good for home buyers or sellers. Presently the Bankrate survey of interest rates across the nation as of January 20, 2022 shows rates being under 4%. Historically still a great rate. If you are looking to make a move I would do it soon. It took 25 years for mortgage interest rates to drop below 6% again in the US after the
1980’s spike.