Owning a home is the ultimate inflation fighter

Dear Friends and Neighbors,

Inflation is the buzzword of the day. As prices rise, people are all asking the same thing – how can I make this stop! For homeowners, one expense remains the same, however, and that is your fixed-rate mortgage payment. It never changes!

 Historically homeownership has offered fantastic protection against rising prices. Even when home prices continue to increase your monthly loan payment stays the same.  

 Here are several key points to consider:

  •  Lately, interest rates are hovering over just over 3.00% for most borrowers wanting a 30-year fixed-rate mortgage. Locking in at today’s low rates could save you a small fortune. Mortgage pre-approved is the first step towards homeownership. It’s easy and fast. Get started today. 
  • Buying a home now is a more affordable option than continuing to rent, even with the home price surge that characterized much of 2021. Homes aren’t overpriced until it costs more to own than to rent.
  • For the time being, rapid home price acceleration has slowed, but Zillow believes that U.S. house prices will keep rising by double digits well into 2022. (graph below), The downside to waiting for prices to fall is that you risk mortgage rates rising. You can eliminate future uncertainty by moving now. 

The chart shown above, provided by Zillow, shows U.S. house prices going back nearly a decade. You can see how appreciation accelerated significantly during 2021. The green shaded area shows the company’s outlook for the next 12 months or so.

  • A lot of renters wish they had bought a home last year or the year before. Don’t wait until your rent goes up to buy a home. The graph below, with data from the U.S. Census, sends a clear message to renters about where rent is headed.

The bottom line

Many would-be homebuyers have been discouraged by stories of low inventory and pandemic-related market stress. Don’t be afraid to buy a home now. Our customers, who are going through the pre-approval process, are having a tremendous amount of success. We can’t emphasize this enough – with our team beside you the whole way, you can buy a home now. If you have a home to sell, don’t worry, we are seasoned in the complexities of helping customers buy one home while selling another.

We are never too busy for your referrals. Feel free to share our message with anyone who might benefit from our insights. 

Sincerely,
Ken Webster

P.S. We hope you are following Two Roads Lending on Facebook and Instagram to keep up with expert advice, market updates, and home tips.