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What does Inflation mean to homebuyers and sellers?

Assuming they have a down payment, the mortgage payment will be a main determinant of what they can afford,  Mortgage rates tend to move in tandem with inflation, so mortgage rates will rise

For home sellers, the current tight market can be a good time to reap a profit—provided that postsale, they can find somewhere affordable to move

 For Example: 

 The house you bought for $200,000 is now worth $300,000, that’s terrific. But if you sell and want to stay in the area, can you afford to buy what you want, or has inflation decimated your spending power? It’s an important question to ask.

 

While inflation will favor home sellers and investors in the near term, the hope is that after 2022, inflation will be reined in. Then, the tide would turn in favor of homebuyers, making it easier to buy a home in the new year.