Mortgage rates have risen since the lows of 2020, which has resulted in potential home buyers becoming fearful about purchasing in the current market. Waiting for mortgage rates to drop may seem like the only option, but this isn't the case! No one can predict what will happen with mortgage rates — they can rise and fall quickly and unexpectedly. This article will outline why you shouldn't wait for a lower mortgage rate, and why now is the right time to purchase your dream home.
Just because mortgage rates are higher now than in the past few years does not mean they will stay stagnant. Mortgage rates rise and drop due to the FED adjusting rates to help fight climbing inflation, an economic phenomenon that has been unpredictable since the start.
Rates were low during COVID-19 due to the economic climate. This has created fear surrounding home buying as buyers feel as though they have missed out on a deal that they should wait to return.
The good news is buyers have the ability to refinance once mortgage rates drop. This allows buyers to take advantage of lower rates even after they have made a purchase, so be sure to chat with your loan advisor and ensure you know the ins and outs of this option.
Based on research and economic predictions, rates are likely to rise. Since you can’t go back in time, purchasing a home in the current climate will allow you to avoid missing out on your dream home, while upholding the option to refinance.
Mortgages are typically less expensive than other loans since they are secured. Purchasing a home is a great way to increase your net worth and grow your personal wealth. Plus, interest can be tax deductible on mortgages if you file in an itemized fashion! Homeowners will have higher net worth than renters since their home becomes a personal asset. If you are looking to improve your personal wealth and grow your net worth, buying a home is one of the best ways to do so.
If you wait until mortgage rates drop, you could potentially be missing out on building wealth.
No matter the mortgage rate, you should only purchase something you can afford. Don’t go into buying a home with the plan of refinancing if you aren't able to monitor your wealth and pay invoices. Mortgage rates are unpredictable, so make sure you are making the best choice for you!
If you are considering purchasing a home and want professional support to make the best financial decision possible, contact the team at Vsells & Associates today!
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