Should you still buy a home with inflation this high?

Higher mortgage rates and home prices have an effect on your monthly payment amount. Furthermore, even though it is undeniably more expensive to purchase and finance a home this year than it was last year, this does not mean you should stop looking. Here’s why.

Homeownership Is Historically been a Good Hedge against Inflation

Prices increase across the board in an inflationary economy. Due to the ability to fix what is probably your largest monthly payment (your mortgage) for the life of your loan, homeownership has historically been a great hedge against those rising costs. Some of your monthly expenses are stabilized as a result. Not to mention, your house will increase in value as housing costs rise. That’s why Mark Cussen, Financial Writer at Investopedia, says:

“Real estate is one of the time-honored inflation hedges. It’s a tangible asset, and those tend to hold their value when inflation reigns, unlike paper assets. More specifically, as prices rise, so do property values.”

Homeownership is one of the wisest moves you can make in an inflationary economy. You benefit from the extra security of owning your home at a time when experts anticipate continued price increases.

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