World events and government spending has led to soaring inflation. The Federal Reserve has only one tool in its arsenal to curb and reduce this trend – raising interest rates. While contemporary 首页 buyers are accustomed to interest rates in the 2-4%, older 首页owners remember being excited to get one as low as 8%. 到目前为止, we have no indication such a drastic increase is necessary, 首页 mortgage interest rates are creeping up and potential 首页 buyers may be asking if they should still try to buy a 首页.
One of the first things to consider is affordability. A higher interest rate will impact the amount of the loan each buyer can qualify for, potentially reducing their spending power. 然而,, 首页 prices are also beginning to soften, so it’s possible that this correction will reduce any possible impact from rising rates.
Secondly, 首页 ownership has been a strong hedge against inflation historically. Buying a 首页 locks in the cost of the largest budgetary portion of your expenses – your housing cost. As the cost of living continues to increase, rents will also rise, continuing to add pressure to an already strained household budget.
Finally, things change. Recessions do not last, 首页 prices eventually rise, and 首页 mortgages can be refinanced. Most 首页owners move every 5-7 years and so potential 首页 buyers should plan for this timeframe when making decisions.
Is this still the right time to buy a 首页? Inflation does have an effect, but it does not necessarily mean that one needs to hold off on a good 首页 purchase.