Andy Fernando

A lot of people hear “inflation is going down” and assume prices should be dropping… but that’s not how it works.
Inflation measures the rate of increase in prices—not the price level itself.
So when inflation slows, it simply means prices are still rising… just at a slower pace.
Think of it like this:
👉 High inflation = prices rising fast
👉 Lower inflation = prices still rising, just slower
👉 Negative inflation (deflation) = prices actually falling (rare—and usually not a good sign for the economy)
That’s why even when inflation improves, groceries, gas, and housing don’t suddenly get cheaper—they just stop getting expensive as quickly.
Understanding that difference is key, especially when you’re trying to time big financial decisions like buying a home.
If you want to break down what current inflation trends mean for mortgage rates and affordability, I’m always here to help.