With higher interest rates and inflation, it’s hard to fathom adding homeownership to your ever growing plate of expenses. The grocery bill alone is outrageous. However, homeownership is a great hedge against long term inflation and stabilizing your cost of living. Here’s some reasons to consider buying now:
- LESS COMPETITION: With interest rates creeping up, more people are sitting and waiting for them to return to a much lower rate. News flash – rates aren’t going to change significantly any time soon and we will likely never see rates fall under 3% again in our lifetime. With rates more than double what they were in 2021, there’s much less competition in the market. This means you can get in the right home without competition from numerous, interested buyers. You are also more likely to secure an uninflated price for your home.
- BUILDING EQUITY NOW: When you buy a home TODAY, you start building equity immediately. Home prices will continue to increase slowly over time, so most home purchases would be considered a safe and stable investment to build wealth. No one regrets the decision to buy now, you only regret that you did not buy sooner. The right time to buy is when you find the house you desire and you have the financial means to make the purchase.
- STABILITY: Securing a fixed rate mortgage on your home means you are hedging against inflation. Consider a scenario where you are renting in an apartment complex – there is a strong likelihood that your rent will increase year over year every time you sign for a new lease term. With a fixed rate mortgage, you are ensuring your payments are stable, thus securing you against inflationary costs. The only costs that may vary are your escrowed items including homeowner’s insurance and property taxes.
When you’re ready to make a move, get in touch with your local lender to get pre-approved – that way, you know your budget when you start the home search. Local realtors are great resources to assist not only in locating the right home, but with all the moving parts of your transaction. When you’re ready to close, contact Prime Title. We would be honored to close on your home.
See you at the closing table!
Anne Elise Doise
Attorney At Law