The housing market has been greatly impacted recently by increased interest rates initiated by the Federal Reserve in an attempt to curb inflation. The rising interest rates have significantly impacted the price of mortgage payments, making it more expensive to borrow money to afford a home. Many potential homebuyers are worried that they may currently be priced out of the housing market right now and are wondering if they should buy a home now, or try to wait out the market for prices to go down. The way the market is at this point, it does not look as though the cost of borrowing money will decrease any time soon. If you are interested in buying a home in Knoxville, Maryville, Lenoir City, Oak Ridge, or Gatlinburg, Tennessee, and are wondering about the right time to buy, Foundation Mortgage is here to help. Continue reading to learn more about the questions that every homebuyer should be asking themselves right now.
What Directions Are Home Prices Going?
If you are interested in becoming a homeowner in the current market, the first question you need to ask is where are home prices heading? Most real estate experts are predicting that home appreciation will increase next year, and within the coming years. This essentially means that if you purchase a home now, your investment will more than likely increase in value over time, resulting in an overall higher profit for the homeowner. If you are able to afford to buy a home during this time of higher mortgage rates, it will most likely result in a successful investment that will be profitable in the future.
What Direction Are Interest Rates Going?
The next thing you will need to ask yourself when buying a home right now is will interest rates continue to rise? Experts are also predicting that interest rates will continue to rise in the coming months. Since the economy continues to be unstable and as inflation persists, it is likely that mortgage rates will continue to make it more expensive to borrow money to buy a home. It is important to note that even though housing prices and interest rates are expected to rise, so are rental prices, so ultimately you will have to determine if it makes more financial sense for you to rent or to own.
Deciding To Buy a Home In the Current Market
If you are trying to decide if you should buy a home now or wait out the market in Knoxville, Maryville, Lenoir City, Oak Ridge, or Gatlinburg, Tennessee, working with Foundation Mortgage and paying attention to current home prices and mortgage rates can help you ultimately make the best decision for your situation.