Should You Buy a Home Right Now Or Not Due to Inflation
July 22, 2022
According to reports across the United States, the Federal Reserve is working on trying to lower inflation rates however, if you pay any attention at all you will notice that prices for everything are still going up. I am sure you are feeling the same pain I am at the gas pumps or the grocery stores. I have had several people ask me if it is really worth it to buy a home right now due to the inflation and prices being the way they are.
Inflation and mortgage rates are both important factors for home ownership plans. Mortgage rates directly affect the price you pay each month on your monthly payments. That along with the home's selling price in turn affect how much you can comfortably afford. While there is no denying that prices are higher than in the years past, that doesn’t necessarily mean you should stop looking or not want to purchase a home this year.
If you ask professionals who study the economy they will likely tell you that homeownership hedges against inflation. What does that mean exactly, you might ask. Your mortgage will lock in your largest monthly payment that you make each month typically. This will help you stabilize and plan out your monthly budget. Not to mention as home prices continue to rise it will make your home’s equity rise also.
Another plus related to rise in home price appreciation is that according to most experts they don’t see this trend stopping or homes losing value any time soon. So, the bottom line is basically that if you are looking or interested in looking for a new home for you and your family now is a great time. If you are looking to upgrade, increase space, or downsize I can help you find the perfect home to fit your needs. Homeownership is a decision you will never regret. Contact me today and let me get started working for you! I want to be YOUR realtor!