On the surface, rising rates appear daunting, however, smart investments assess all factors. The more you wait, the less you will be able to afford and rent prices are projected to outpace homeownership.
Rent prices are accelerating alongside inflation as more people flood the rental market. Most renters are unaware that homeownership can be more affordable than renting in this environment. Realtor.com reported that first-time home buying was the cheaper option in almost half of the nation’s largest markets in July of 2021. It often pays to know your options and to take advantage of the market, and in this market, buyers need to act quickly.
The pandemic has had a unique effect on our society. Inflation spikes, public safety protocols, and a remote work movement have caused people to redefine the meaning of home. Untethered from an office or front-line job, one in five homeowners will relocate to cheaper areas for flexible space. New construction incentives and discounts also encourage buyers to make a move.
Rates are rising and will continue, however, compared to alternatives and their own history, interest rates are still considered low. Home prices are also rising in tandem with values. Though this means gains through appreciation, the longer you wait, the less of a home you will be able to afford. Investing now can help you build equity with the rise and if rates change, refinancing gives you the ability to lower your monthly payments.
For many, the dream of homeownership as a smart investment is still alive. Recovering from the impact of Covid, higher rates and prices could be here to stay. As home-centric lifestyles place a greater value on versatility, win the home of your dreams and get the security of a low fixed rate today. Our custom loan programs offer unique aids and privileges that help people from diverse circumstances benefit from homeownership. InterLinc makes it easy, reach out to a qualified Loan Originator today to find a program that is right for you.