Freddie Mac: Inflation and Rate Hikes Likely Already Baked-In


Posted To: MND NewsWire

Freddie Mac’s Insight forecast for February looks at reports that consumer price inflation is rising, and the ensuing debate over “whether or not we are shifting from a world of low consumer price inflation to one of moderate inflation.” The company’s Economic and Housing Research Group says rising inflation would have a significant impact on housing markets by driving up mortgage interest rates. They look at the arguments regarding reflation in the form of three scenarios illustrating higher inflation, lower inflation, and stable inflation and include a qualitative assessment of the probability each might occur and how the housing markets would respond. In a sidebar separate from the Insight piece they describe the two primary ways of measuring inflation . The one familiar to most people because…(read more)

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