While we don’t have a crystal ball, interest rates are unlikely to return to peak pandemic levels anytime soon. Thanks to a push from the government, interest rates have corrected to be at about an average level for the last two decades.
Fun fact in 1985 interest rates were between 11% and 12% and hit as high as 20% in the early 80's.
To put it simply: don’t panic! It’s still a great time to buy a home! If you need a bit more information on why now is the right time buy a home, read our top 3 reasons below.1. Rental Prices Continue To Increase
Rental prices are at a historic high and continue to rise—without allowing the renter to build equity. When you’re renting, you’re essentially paying your landlord’s mortgage. When you move, all of your “investment” is lost. This is not the case when you own your home. Instead, your mortgage payment builds your own net worth, not your landlord’s. Homeowners can access this wealth when they sell their home, or while they remain in their home through home equity loans or a cash-out refinance.
2. The Cost of Waiting
Historically, home values in the United States have only gone up. While they do occasionally dip, as we saw in the Great Recession, in the long run, real estate is always a good investment and increases in value over time. Additionally, there is generally a “balancing” that occurs when interest rates rise—prices drop and buyers gain back the control that they lost at the height of the market.
Long story short, now is the best time to get the most value for your money by investing in owning your own home.3. Watch Your Investment Grow
The money that you “spend” on a down payment for a home can be viewed as an investment, or a saving account. While not quite as easy to access as money in the bank, the money you put down on your home is still yours—it’s equity in your home. Historically, your down payment will grow in value much faster than money in a savings account—all while you’re enjoying the investment of owning your own home!
We're happy to chat with you about interest rates, the value of new construction, and anything home related!