The cost of homeownership is rising but the question is, should you buy? The answer is in the history of rates and the current post-pandemic factors that are affecting the market.
Covid-19 affected more than just a sense of well-being and the economy, it was a major change to daily behaviors, introducing remote work to many for the first time. The disruption to operations coupled with the movement of labor workers to online careers inevitably limited the supply of goods and raised labor costs as companies struggled to keep up. Like a domino; goods, property taxes, insurance costs, interest rates and rent rise.
To soften Covid's impact, mortgage rates were intentionally pulled to their all-time low of 2.68% in December of 2020. The Federal Reserve reduced borrowing costs, allowing lenders access to funds needed to drop interest rates. Now recovering from the pandemic, rates are rising back to a normal level and will continue to rise alongside inflation. Before Covid-19, the average interest rates were nearly double that of 2022. Rates reached up to 16.63% in the 1980s. Still relatively low compared to other financial rates such as credit cards, payday loans, furniture, and former home interest rates, homeownership is still considered a wise investment.
Predictions that rent prices will accelerate and the pivotal shift in home needs have caused a market unlike ever before. For first-time homebuyers, now is the time to buy. Inflation will continue to raise prices; however, new incentives and custom loan programs can make homebuying more affordable than renting. Appreciation could provide additional savings as home values are anticipated to increase.
Buying has benefits past the ability to modify a home to your lifestyle. Get a secure investment that will last through the volatile years to come and build equity in the process. You might be able to afford more than you expect. Don’t settle for less, contact us today.
Everyone we came in contact with was great. They answered all questions and concerns that we had. We would recommend to anyone buying or selling.
P Schonburg
Fast and efficient throughout the process.
J Maguino Zegarra
Everyone was wonderful. made our experience so easy
K Schonburg
Paul and his team made the whole process as straight forward and stress free as possible. Would recommend Paul and his team to any first time home buyers.
B Allgeier
I felt very cared-for during the entire loan process. All of the electronic tools were convenient, and the entire team was extremely responsive to all of my questions and making sure I had everything in place. Thanks!
K Mallory
Pleasant transaction overall.
Z Aubrey
Excellent service, knowledgeable team and seamless process. These guys are great!
J Cerasari Jr
Very easy to work with and fast. Answered any questions and made the process very clear and easy for me being a first time home buyer
C Rooks
Fast. Friendly. Great service.
E Myers
Everything was great!
T Young
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