The Federal Reserve has been busy.
Raising interest rates five times this year, the last increase raised it by three-quarters of a point. It is the most active U.S. central bankers have been since 2005, and now the Fed is preparing to lift rates again.
At the RCG Home Loans, we do not expect relief in the coming months. Despite the rising rates, 2022 could be an opportune time to purchase a home.
Should you wait?
There’s never a perfect time to buy a house. It can be challenging even in a buyer’s market. RCG believes waiting to purchase could cost you. Projections signal the Fed plans to raise rates again this year and more in 2023.
“Mortgage rates will continue to rise,” RCG Founder Robert Coomer said. “The Federal Reserve wants to get inflation under control, but it may take time. The good news is that as interest rates rise, home valuations stabilize. These factors indicated a more positive climate for home buyers.”
An advantage to house hunters is the increase in inventory as the market transitions to a buyer’s market. According to a Realtor.com report, inventory was 26.6% higher than a year ago. It further stated a “moderate housing market means more options for home shoppers.”
Another consideration is if you plan on renting before purchasing, it’s getting more expensive. According to analysts, the average rent in Nevada increased by 25% since the beginning of the year. A benefit of homeownership over renting is gaining equity. Over time, your overall net worth grows rather than your landlord’s.
“Consumers need to work with a mortgage professional who can thoroughly review finances and current mortgage offerings to create a clear plan for purchasing a home,” Coomer said. “There are a variety of options and approaches a trained professional can educate a consumer on, which, in turn, will help to reestablish confidence in this current housing market.”
Purchasing a home is a personal decision. It’s essential to consider your financial situation and understand the economic climate.
RCG Home Loans provides a wide range of mortgage products tailored to fit your needs and situations. We are here and ready to help you navigate the ever-changing home-buying landscape.