Is Inflation Affecting Your Homebuying Plans? Let's Break It Down!
Let's talk about inflation and how it affects your decision to buy a home in 2023.
Inflation means the prices of everyday things, including housing, have increased. In fact, inflation in 2021 reached levels we hadn't seen since the 1980s. Since then, the cost of housing has continued to rise, although the rate of increase has slowed down a bit recently.
With houses becoming more expensive and mortgage rates above 6% for the first time since 2008, you might wonder if it's wise to hold off on buying a home. But here's the thing: if you're financially ready, now might be a great time to buy!
Buying a home today has some advantages. Firstly, it allows you to start building equity, which is basically like an investment in your home. Secondly, if you get a fixed-rate mortgage, your monthly housing costs will remain stable for the long term, even if other expenses in life keep going up.
But that's not the case with renting. Freddie Mac's 2023 Multifamily Outlook shows that rents increased by 6-8% in 2022 and are on track for another 3.9% growth in 2023!
Sure, rent and home prices might keep going up, but there are definite advantages to buying a home now if you're ready.
Even without inflation, rental prices typically increase each year. But as a homeowner with a fixed-rate loan, your monthly housing costs won't change much over the life of your loan.
Ready for some peace of mind with your housing costs? Please get in touch with us today to figure out the best home loan type for your financial needs.