17
Sep
By Fred Gruber
Mortgage

How Borrowers Can Benefit from Inflation with the Right Mortgage

Inflation is a topic that impacts nearly every part of the economy, from the cost of groceries to long term financial planning. For homeowners and those considering a mortgage, inflation can feel intimidating. However, with the right perspective and strategies, borrowers can use inflation to their advantage and create lasting financial benefits.

Understanding the Relationship Between Mortgages and Inflation

Inflation reduces the purchasing power of money over time. While this can make everyday expenses higher, it also works in favor of borrowers with fixed rate mortgages. Since the mortgage payment stays the same each month, the real value of that payment decreases as wages and prices rise. In other words, the loan feels more affordable as time passes.

The Benefit of Fixed Rate Mortgages

One of the clearest ways to benefit from inflation is by choosing a fixed rate mortgage. Unlike adjustable-rate loans, fixed rate options lock in the interest rate for the entire term. As inflation increases, homeowners with fixed mortgages enjoy stable payments while renters often face rising rents. Over the years, this stability can free up more of the household budget for savings, education, or other investments.

Building Equity Faster

Inflation can also accelerate the growth of home equity. As home values rise along with inflation, homeowners often see their property appreciate. While the mortgage balance gradually decreases with each payment, the value of the asset typically grows, creating a stronger financial position. For families, this can mean greater security and more options for the future.

Protecting Long Term Wealth

Real estate has long been considered a hedge against inflation. By owning a home with a stable mortgage, borrowers can protect themselves from some of the challenges that rising costs bring. Monthly payments remain consistent, while the property itself may increase in value over time, helping homeowners preserve and even grow their wealth.

Inflation can create challenges in daily life, but it also presents an opportunity for homeowners. By securing a fixed rate mortgage and thinking long term, borrowers can position themselves to benefit as inflation reduces the real cost of their loan and increases the value of their property.

16
Sep
By Fred Gruber
Mortgage Tips

How Parenthood Changes Mortgage Needs and Housing Priorities

Becoming a parent is one of life’s most exciting milestones. Along with the joy and responsibility of raising children, many families find that their housing needs and mortgage priorities change dramatically once little ones arrive. What may have worked for a single person or a couple often needs to be reevaluated when planning for the comfort, safety, and growth of a family.

Space Becomes Essential

One of the first priorities for parents is space. Families often seek larger homes with additional bedrooms and bathrooms to ensure that children have their own space and parents have room for future growth. An open floor plan, play areas, or even a finished basement can quickly rise to the top of the wish list as families picture years of activity, homework sessions, and holiday gatherings.

Location Takes on New Meaning

While proximity to work and entertainment might have once been the main factors in choosing a home, parents often focus more on the quality of local schools, safety of the neighborhood, and access to parks, daycare centers, and medical facilities. The right location becomes just as important as the house itself, providing a foundation for daily life and long-term family stability.

Financial Stability Matters More

Parents may look for mortgages with predictable payments, such as fixed rate options, to create stability in their budgets. With the added expenses of childcare, education, and family activities, many parents want to make sure their mortgage aligns with a comfortable monthly payment that leaves room for savings and emergencies. Some families may also explore mortgage products that allow for future flexibility, especially if one parent plans to pause their career or if the household income changes.

Planning for the Long Term

Another important factor is the long-term view of homeownership. Parents often think beyond the immediate present, considering how their home will serve their family over the next decade or longer. Questions like “Will this home grow with us?” or “Is this neighborhood somewhere we want to stay for years?” become central to the decision-making process.

The Big Picture

Ultimately, parenthood changes how families think about housing and mortgages. It shifts the focus from personal convenience to creating a stable, nurturing environment for children. For many, buying a home is no longer just a financial investment but also an investment in their family’s future.

15
Sep
By Fred Gruber
Financial Reports

What’s Ahead For Mortgage Rates This Week – September 15th, 2025

Both the CPI and PPI came in precisely within expectations. Under the current circumstances, there is now a very high probability that the Federal Reserve will implement a quarter-point rate cut, a view widely shared by industry analysts. There is also a strong possibility of another cut to follow.

Meanwhile, Consumer Sentiment has hit another low in the last 4 months, as many have growing concerns about the state of the job market in addition to inflation continuing to grow. It is unknown how much the rate cuts will impact inflation, but so far the Federal Reserve has managed to maintain a delicate balance.

Consumer Price Index
The cost of living rose again in August at an accelerated pace, but probably not enough to discourage the Federal Reserve from reducing interest rates next week. The latest consumer price index (the main measure of U.S. inflation) could raise questions about how aggressively the Fed cuts rates, however, in the upcoming months. The consumer price index rose 0.4% last month, the government said Thursday. That was one tick above the Wall Street forecast.

Producer Price Index
The producer price index (PPI) dipped 0.1 percent on a month-on-month basis, according to Department of Labor data — when analysts had expected a 0.3-percent increase.

Consumer Sentiment
The University of Michigan’s gauge of consumer sentiment fell to a reading of 55.4 in September, a four-month low. The worsening of sentiment was particularly strong among lower and middle-income respondents.

Primary Mortgage Market Survey Index
• 15-Yr FRM rates saw a decrease of -0.10% for this week, with the current rate at 5.50%
• 30-Yr FRM rates saw a decrease of -0.15%, with the current rate at 6.35%

MND Rate Index
• 30-Yr FHA rates saw an increase of 0.05% for this week. Current rates at 6.00%
• 30-Yr VA rates saw an increase of 0.04% for this week. Current rates at 6.01%

Jobless Claims
Initial Claims were reported to be 263,000 compared to the expected claims of 236,000. The prior week landed at 237,000.

What’s Ahead
The FOMC Rate Decision will be ahead next week, as well as the usual employment data.