While you may have heard that timing the real estate market is tricky, that does not prevent many homebuyers from doing so. With that in mind, you may be wondering if now is a good time to buy a home. Inflation is skyrocketing. Both home prices and interest rates are rising. It is becoming increasingly unaffordable to purchase a new home. With this in mind, it may not be a surprise that many people say that now is not a good time to buy a house.
In fact, Fannie Mae’s National Housing Survey has been tracking consumer sentiment for more than a decade, and it indicates that sentiment is at its lowest since it started tracking data. Only 25 percent of individuals who responded to a recent survey indicated that now is a good time to buy. More than that, 70 percent indicated that now is a bad time to make a purchase.
Nonetheless, the housing market continues to be hot, and many people are still interested in buying a home. The result is that many homebuyers are feeling dejected by the situation as a whole, but they are still interested in walking through the process. This may be because of a combination of factors. For example, wages are not keeping up with inflation, and rents are rising in many areas of the country. It is quickly becoming unaffordable to rent a home. By purchasing a home today, you may be locking in a principal and interest payment for the next 30 years. Keep in mind that homeownership is a solid hedge against inflation.
The situation is not ideal for renting or for buying, but it is important to compare your options today. Before you decide to sign another lease, reach out to our lending team at MortgageDepot. We can show you the mortgage terms that you qualify for so that you can make an informed decision.
Contact one of our loan consultants to learn more.