Real Estate Glossary

What is Inflation?

The rate at which the general level of prices for goods and services is rising and subsequently purchasing power is falling. Inflation can be caused by a number of factors, including changes in supply and demand, changes in monetary policy, and shifts in the global economy. Inflation can have a number of effects on real estate, such as driving up property values and making it more difficult for people to afford a home. It can also affect mortgage rates and interest payments.