Did you know that the prices of things like food and toys can go up? That's called inflation! Inflation affects many things, even how much you pay for a house! This news explains how inflation affects the interest rates on home loans (mortgages).
- Inflation is when prices rise.
- The Federal Reserve (like a bank for other banks) tries to keep inflation low (around 2%).
- When inflation is high, the Fed raises interest rates to slow down borrowing and spending.
- Higher interest rates mean paying more for a mortgage.
- The average 30-year mortgage rate was recently 6.63%, but it changes.
| Fact | Number |
|---|---|
| Average 30-year mortgage rate (Q4 2024) | 6.63% |
| Fed's inflation forecast for next year | 3.1% |
