Should you buy a home in 2022? These insights could help with your decision.
Should you buy a home now? This question is one of the most pressing among everyday Americans today. Given a multitude of factors, the housing market is more complicated than it looks at first glance. While the recent mortgage rate increases have been apparent, there is more to the story. Should you buy a home now or wait? Consider these insights below.
The Context of Mortgage Rates
Interest is a part of the additional cost of buying a home. When you take a mortgage, you pay a small percentage of the monthly rate to the lender. It is no secret that the mortgage rate has risen over at least the past year, and many are concerned about another housing market bubble like that of 2006, which eventually contributed to the Great Recession. Experts expect that the interest rate may continue to go up, but only at a very slow rate.
Even so, consider the context of mortgage rates in a larger view. Compared to the beginning of the 1980s, the early 2020s seem tame. Ever since 1971, the average mortgage rate has landed thus far at 7.76%, which today’s mortgage rates have not yet reached.
Today’s Housing Market
The housing market is complex, but there are at least two factors that are driving up housing prices that are completely natural: the increase in demand and the lack of supply. Millennials are now ripe for home buying, and with the coming of age of this next generation comes an increased demand for homes.
At the same time, there is a lack of supply. Most homeowners would rather renovate their existing homes than move. Other factors that might influence the lack of supply include a growing population and current events, such as the supply chain issues for building materials.
Is the Time Right for You?
Is this the right time for you to buy a home? Personal factors also may make now the best time to make the move. If you are moving locations for work, family, or other reasons, now may simply be the right time.
BUILD YOUR WATERFRONT DREAM HOME WITH SHORE-LINE CONSTRUCTION!
At Shore-Line Construction, we know that your home is a reflection of you. That’s why we strive to make each home we build as beautiful as the family who will live there. We work with each of our clients to design a home that fits their needs. The end result is a durable, energy-efficient custom home that the family will enjoy for generations to come. Shore-Line Construction has been serving our customers for over 25 years, and we look forward to the opportunity to help you!
If you’re interested in learning more about what Shore-Line Construction can do for you, check out our website or give us a call at 410-574-6623. Keep up with all of the latest news by following our blog and social media pages on Facebook, YouTube, Pinterest, and Houzz!
