OK. So the title here is no surprise, but……did you know, inflation is usually a sign that long-term mortgage interest rates (30 year mortgages fall in this category) will be on the rise?  Yes, that means as interest rates go up, the longer you wait to buy a home, the more your mortgage payment would be…….Unless prices came down.

If interest rates go up 1% (lets say from 6% to 7%) the price of homes will have to decrease 8% to have the same mortgage payment. 

A panel of analysts surveyed by Bankrate.com….expects rates to go up in the next six weeks. With the threat of inflation growing and investors wary of buying mortgage securities, other forecasters have predicted rates will hit at least 7% by the end of the year.