Why Inflation Makes it More Difficult for People to Become First-Time Homeowners
“Why does inflation make it more difficult to become a first-time homeowner?”
Becoming a first-time homeowner takes a lot of prep work. You have to have a relatively high credit score to qualify for a loan, a stable income to cover the mortgage, and enough money in the bank to make the downpayment. These factors all make inflation a more deadly force. To begin, governments usually make interest rates higher to take the steam out of inflation. This makes taking on a new mortgage loan more onerous and difficult to obtain. The price of land will also skyrocket while most people’s incomes stay flat, making the first move harder to make. Bank accounts may be drained to cover the increasing cost of daily life, hurting people’s potential for a solid down payment. This is Why Inflation Makes it More Difficult for People to Become First-Time Homeowners.