The Covid-19 pandemic has led to what may be the most severe housing crisis in decades. With homeowners and renters from big cities relocating to the suburbs, housing is in high demand, and property values are increasing almost every month. While interest rates slipped during the heart of the pandemic, interest rates are rising yet again, and mortgage rates to follow the same pattern, which begs the question – is now an excellent time to buy a home with interest rates rising?
Why now is a great time to buy a home
With interest rates rising, inflation in full swing, and housing prices going up, investing in a home now could save you money on your monthly mortgage rates before prices go up even more. The cost of waiting could be exponentially higher and more competitive with the demand for housing still rising and the world still reeling from the economic impact of Covid-19.
With inflation is on the rise and supply shortages around the world, home prices and the cost of renovations will continue to rise for the foreseeable future. Additionally, statistics show that homeowners are once again investing into their homes, meaning the likelihood of purchasing a newly renovated home is higher than ever before. While this may mean higher home prices, it also takes away the stress of renovating the home yourself and taking on the associated costs.
If interest rates and mortgage rates are rising, is it still a good time to buy a home?
This common question is subjective and depends entirely on the individual or family.
If you have been exploring buying a home and have the means to do so, buy now before rates skyrocket. The Federal Reserve recently announced that Americans should expect higher rates and fees during 2022, meaning the cost of purchasing a home will only grow. While current rates may be higher than they were a year ago, now is the right time to invest if you plan to buy a home in the next year.
Posted February 16, 2023
by Treeium Inc..