Inflation Have You Rethinking Your Home Buying Plans?

Post Image

The price of everything has gone up.

It’s not an exaggeration or “hot take.” Inflation is near a 40-year high; everyday essentials such as putting gas in the tank, buying groceries, dining out and home utilities have led to sticker shock for many Americans. Budgets are tightening and conscious decisions are being made about finances.

What is Inflation and How Does It Impact Today’s Price Hikes?

Inflation is a decrease in the purchasing power of money and an increase in the costs of goods and services. In simple terms, your dollar will not go as far today as it did yesterday and may not be as valuable tomorrow. Inflation is not something new; the U.S. has weathered several bouts of price hikes over the decades, each presenting similarities yet being unique in their own way.

So, what’s driving today’s inflation? There is no one particular answer. Several factors may have contributed to rising prices, including strong consumer demand coupled with supply chain shortages during the COVID-19 pandemic.

How Do You Cool Off Pricing and Fix Inflation? 

Enter the Federal Reserve – or “Fed” for short. The Fed serves as the central bank of the U.S. It’s responsible for monitoring risks to the financial system and supporting a robust economy for families and communities through sound monetary policies. In the situation of inflation, the Fed can generate interest rate fluctuations from its arsenal of tools. 

Rates affect everything from credit card interest and car loans to mortgages, making it more expensive to borrow money. To curb inflation and bring prices back under control, the Fed increased interest rates by a half-a-percentage point.

Surprising Upside for Home Buyers

So, if you’re buying a new home, what does this all mean for you? Higher rates could result in less competition and fewer bidding wars, cooling off the rise in home prices. That scenario may have already started to play out as home sales fell for the third consecutive month. If you have the financial leeway and don’t want to wait on the market to right itself, there’s a step you can take to get in the door and achieve homeownership.

Buying a home doesn’t come without its challenges, but today’s housing market presents unique circumstances. With rates increasing more frequently, home buyers may feel more inclined to pause their home search. Union Home Mortgage offers an opportunity that lets buyers secure a mortgage rate while still looking for a home that may help save a lot of money in the long run.

Introducing Lock & Shop

Union Home Mortgage’s Lock & Shop* program lets a buyer lock in a mortgage rate and keeps it safeguarded against costly rate hikes for up to 90 days. Typically, you will lock in a rate after finding a home, but with Lock & Shop, the rate is taken care of first, allowing more time and peace of mind to shop for the perfect house. Should rates go up, you get to keep the lower rate.

How Does Lock & Shop Work?

It’s pretty simple to take advantage of Lock & Shop. First, we’ll help you become a Ready, Set, Home! Certified Home Buyer. You can think of it as the gold standard for purchasing a home. Ready, Set, Home! helps give you a serious edge with home sellers by ensuring you have full pre-approval to make an offer that delivers the confidence and security of a cash buyer.

The process to become a Ready, Set, Home! Certified Home Buyer begins by having your financial assets, employment and income verified upfront. Once certified, funding is secure, and we can lock in your rate. Shop for a new home knowing you can make a trustworthy offer and get to closing faster.

Lock & Shop Features

  • If rates increase while looking for a home, your mortgage will not be affected.

  • Lock & Shop is available for conventional, FHA, VA, and USDA home loans.

  • Available for primary residence with no property address needed to participate in the program.

If you want to buy a home while avoiding costly rate hikes, utilize Lock & Shop by becoming a Ready, Set, Home! Certified Home Buyer. You’re a step ahead of the competition as a certified home buyer. Assets are verified and approved upfront; funding is secure and your rate is locked, giving you greater purchase power to make an offer stand out and close on your home faster.

Speak with a Union Home Mortgage home loan expert to get started on securing your rate with Lock & Shop.

*Lock and Shop Program (“Program”) will lock your initial interest rate for up to 90 days. To be eligible for the Program, borrower must participate in the Ready, Set, Home! Certified pre-approval program with Union Home Mortgage (“UHM”). No property address is required when participating in the program. There is a $1,000 deposit required with this Program due at time of lock. The $1,000 will be applied to your cash to close at the time of loan closing. The $1,000 will be refunded if the loan does not originate. Subject to lender discretion.  See for full terms and conditions.

Discover Your Mortgage Options

If you’re thinking of buying a home or refinancing, we’re here to help. Start the loan process from right where you are.