When the cost of living is increasing potential homebuyers tend to become nervous. The question ‘should I buy a home’ is on the mind. People have a variety of reasons for wanting to become homeowners. Regardless of your reason if you want to buy a home now is actually a great time to do so.
Aren’t rates going up?
Rates are still LOW! You can get a fixed term in the 2% range. With a fixed term you can guarantee your rate and payment stay the same for the life of the term. With terms being offered from 1 to 10 years in lenght this is a long time to have peace of mind. Variable rates are even lower currently and can offer interest savings up. Depending on your goals a variable rate can be a good option but they don’t offer the same security that a fixed rate offers.
The ability to guarantee your mortgage payments for up to 10 years is a huge plus in times of uncertainty. As a tenant you have to accept the risk of landlords increasing rent. As a homeowner you no longer have to live with this concern.
Should I have other concerns?
Credit risk has only risen modestly as indicated in the excerpt below. The biggest risk we are facing right now is a supply/demand risk.
That’s against the backdrop of “very significant” home price increases, which are up 23% as of October compared to a year ago (on a seasonally adjusted basis) to an average price of $716,585. In some markets, home prices are up over 30%. At the same time, housing supply has plummeted to record low levels, with just 1.9 months of inventory available, down from a long-term average of about five months.
For anyone who is considering homeownership we recommend getting review done on your purchasing ability. We can help you find out if you can qualify or what you need to do in order to qualify. We can also advise you of your costs to have a mortgage and whether it fits in with your financial goals.
