Here's why you shouldn't be afraid of inflation if you're looking to buy.
Inflation shouldn’t stop you from buying a home in 2022, and today I’ll talk about why that is.
Homeownership offers stability and security. Home prices have been increasing for quite some time, and experts say that they’ll continue to climb throughout 2022. As a buyer, how can you protect yourself from rising costs for things like food, shelter, entertainment, and other goods and services? The answer lies in housing.
Buying a home allows you to lock in your monthly mortgage payment for the foreseeable future. That means as other prices rise, your monthly payment will stay consistent thanks to your fixed-rate mortgage. In turn, you’ll get the peace of mind that the bulk of your housing costs will be shielded from inflation. If you rent, you don’t get the same benefit, and you won’t be protected from rising housing costs.
“The best hedge against inflation is a fixed housing cost.”
As an added incentive to buy, consider that today’s mortgage interest rates are lower than they have been in decades. While inflation increases what your dollar can buy, low mortgage rates help you counteract it by boosting your purchasing power so that you get more home for your money. They also keep your monthly payments down. This is especially important during inflationary periods because you’ll want to protect yourself from the impacts as much as possible.
Ultimately, the best hedge against inflation is a fixed housing cost, and that’s why you shouldn’t let the times stop you from buying a home this year. If you have any questions or would like more information, don’t hesitate to give my team a call or send an email. We’d love to help you.
