Is Buying a New Home Your Idea Of Summer Fun?
CMS Mortgage Solutions Inc.
CMS Mortgage Solutions Inc.
Published on August 31, 2022
Summer fun! Is buying a new home your idea of summer fun? CMS Mortgage

Is Buying a New Home Your Idea Of Summer Fun?

School is out and summer brings upon us a time of fun, sunshine, and maybe a new home!

Depending on your circumstances, buying (or not) a new home this summer might be the right strategy for you. Interest rates are rising and that means it might be time to buy (or not)? The cost of buying or not buying a new home is usually based off two distinct variables: asking price and interest rate; but let's say these both stay at their current levels. Would you still wait before buying a new home?
There are many things to consider before making an investment. Do you want great schools? A safe neighborhood with plenty of shops and restaurants nearby or would prefer more privacy for your family ? Whatever the reason behind purchasing property-you should establish whether it's worth waiting around or taking the plunge now!
There are many reasons to consider buying a new home this year, but is now really the right time?
  1. Home Prices are Still Increasing
The housing market continues to show few signs of slowing in most metropolitan areas, with home prices reaching new heights. Many buyers are putting off purchasing a house because they believe that the seller's advantage can never last forever; however this thinking may be inaccurate as it does change places, depending on location and other factors like demand for real estate among others things.

According to CoreLogic, 2021 home prices saw a 15% increase of those in 2020. Slowing down a little bit, home prices are projected to grow by an average of 10% in 2022. While it is a small improvement, prices are still growing. Making now a perfect time to lock in your dream home at a smaller price than in the future.

2. Interest Rates Won’t Be This Low Forever

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This is true – the current low interest rates won’t stay this low forever. They are likely to rise eventually as the economy continues to improve. This means that now may be a good time to invest in long-term assets like a mortgage, since the prices of the asset is likely to go up when interest rates do rise.

Experts predict that interest rates will begin to rise over the next 12 months as we deal with inflation, supply chain issues and economic impacts of war in Ukraine. This will impact monthly payments, so if you're waiting for them go back down under 3%, this might not be a good strategy anymore!
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3. Forces Saving Habits

Think of your monthly mortgage payment not as a cost to pay down the loan but rather an investment in yourself. By building equity, you are actually saving money for when it’s time that retirement or another big expense comes around. The equity in your home is money that you can see again and when it’s time to sell, all of those dollars can be yours! That makes paying off debt or putting away cash for retirement even more important because they’ll come from an unexpected source – instead of coming straight out of one pocket and into another.

Just remember, you will never see the money you out towards rent again, but you will see the equity you build in your home when it comes time to sell.

4. Opportunity to Start Building Wealth Today

When you get a mortgage, you are essentially investing in a long-term asset - the home itself. Over time, as the economy continues to improve and interest rates rise, the value of your home is likely to go up as well. This makes mortgages a great way to build wealth over time.

In the short term, it may seem like taxes and utilities will rise but not your payment. And over time you’ll most likely benefit from property appreciation which is a great strategy for building wealth!

5. Create Your Ideal Living Situation

The stability and security of owning a home is unmatched by the ever-changing nature found in renting. Rent usually only increases which means what you pay now will look like an absolute steal 10 years from now when your paying much more than necessary, due to increased property taxes or poor building conditions at owner's discretion – not including any repairs that may be neglected without attention.

Owning a home is the best investment you can make in your future. It offers more financial stability and family stability than renting, which means less spending on mortgage interest payments each month for years to come! Owning also creates opportunities for wealth building that renting just doesn't have - so if this sounds like something up your alley then go ahead with purchase today before prices rise even higher tomorrow.

Mortgages are a great way to build wealth over time. When you get a mortgage, you are essentially investing in a long-term asset - the home itself. And as the economy continues to improve and interest rates rise, the price of that asset is likely to go up. This makes mortgages a great way to build wealth over time. So if you're thinking about buying a home, now is definitely the time to do it! The current low interest rates and high prices of homes make this an ideal time for homeownership.

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CMS Mortgage Solutions Inc.
CMS Mortgage Solutions Inc. Virginia Beach
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(757) 558-2603