| Hi Taylor
- I saw a headline that said "U.S. Mortgage Rates Continue To Surge"
and it made me depressed. What does this mean for people looking to
buy a house? Will it ever happen?
Hi Stacey - No two ways about itrates are HIGH. I think
interest rates are the highest they've been in over 20 years. So,
no, it's not the "best" time to buy a house. That said, buying a house
is never off the table. It's an investment worth making if you're
in the right position to make it.
waste time comparing. If you're distressed that interest rates
have gone up so much in the last two years, try to let go of that.
Rates were in the high teens in the 1990s when the economy was
booming and people bought a lot of properties back then. Everything
is relative at this moment, so don't lose sleep over what would
have happened if you bought a house in 2016 because that isn't
going to help your situation. Instead, take stock of what you
have now and what you're hoping to accomplish.
2. Will rates go down? Sure. We don't know when or by how
much, but rates will always rise and fall depending on the strength
of our economy. We're still working through a year-long battle
against inflation, so the current situation is not the new normal.
That said, it'll take a minute for rates to adjust and it might
be a while before they get significantly lower. They could certainly
go up more before they come down. We might be on the precipice
of an extended run of really high APRs. None of us should be in
the business of predicting the future, because that's not a realistic
way to make smart financial decisions. The minute you let guesswork
inform your homebuying, you're putting yourself at risk.
3. Think about your buying power. While high mortgage rates
cost you in the long run, it doesn't affect the amount of money
in your bank account. Do you have a downpayment ready to go? Can
you buy and flip a home to build up some equity and buy a bigger
house? Are you paying too much in rent and need to find an alternative?
Interest rates are just one of many factors for someone looking
to buy a house. It's easy to get scared off by the thought of
spending extra thousands of dollars, but if you really want to
buy a house you should always be thinking of ways to make that
| Interest rates
have been surging. It's not a lot of fun to watch the rates shoot
up. Nevertheless, we shall persevere and buy homes and sell homes
and continue to thrive. Don't give up, Stacey!
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an offer or solicitation for the sale or purchase of any specific
securities, investments, or investment strategies. Investments involve
risk and, unless otherwise stated, are not guaranteed. Be sure to
first consult with a qualified financial adviser and/or tax professional
before implementing any strategy discussed herein. To submit a question
to be answered in this column, please send it via email to Question@GoFarWithKovar.com,
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