Rising Inflation

St. Louis Federal Reserve President, James Bullard, shared with CNBC that he believes inflation could get much worse without central bank action on interest rates (Cox, 2022). In addition, he said that there’s been too much emphasis that inflation will dissipate, and is pushing the narrative that more than ever, we’re at risk of the 7.5% clip we’ve seen over the last year getting worse.

Increasing Interest Rates Could Be The Answer

The federal reserve has resisted raising interest rates throughout the pandemic due to clogged supply chains and outsized demand. Now, it’s predicted that they will start raising interest rates in March in an effort to contain price surges that are running at the fastest pace in 4 decades. Bullard anticipates that there will be 5 to 6 more rate hikes at 25 basis-point increments, totaling a full percentage by July 2022.

 

Make Your Move Before It’s Too Late!

We can’t blame you if you’ve been on the fence about moving due to low inventory and rising inflation. However, based on the analyses of James Bullard and others in the industry, it’s looking like market conditions might worsen. If you are considering a move, it is our advice to take action now and sell your home for the highest prices we’ve ever seen and buy before interest rates increase! Call about our Guaranteed Sale Program or our Stay in Your Home Guarantee, where you can take advantage of the market by selling your home now and staying in your home for up to twelve months. Call us now at  804-508-6689!

P.S. Our in-house mortgage company, Empower Home Mortgage, is fully-equipped to get you pre-approved fast so you can move up to your dream home! If you need a guide during this monumental chapter in your life, please don’t hesitate to reach out to us for advice and guidance!

 

CITATIONS

Cox, J. (2022, February 17). Fed’s Bullard says inflation ‘could get out of control,’ so action is needed now. CNBC. Retrieved February 23, 2022, from https://www.cnbc.com/2022/02/17/feds-bullard-says-inflation-could-get-out-of-control-so-action-is-needed-now.html