*Updated February 6, 2023
Inflation may be on the rise, and buying a home may be one of the best ways to help stabilize some of your monthly expenses. That may be surprising news, given that U.S. inflation rates are the highest they’ve been since 1981 (8.6% in August 2022), according to the consumer price index (CPI). While our current inflation economy means higher prices across the board, homeownership is a great way to stabilize some of your monthly expenses. It’s also important to recognize that while there’s a current rise in interest rates, buying a home is often a better investment than renting. This is definitely the case in Reno, where rental rates are increasing at a remarkable speed. Locking in a set mortgage rate is one of the best ways to build your long-term assets while also creating a stable monthly payment. So while the Federal Reserve continues to raise interest rates in hopes of easing inflation, here are some reasons becoming a homeowner can help, and it's more achievable than you might think.
Stable Monthly Payments
While rent and inflation are guaranteed to fluctuate over time, a mortgage rate is a fixed monthly expense. When you buy a home, your mortgage rate is locked in for a set period of time. This means that your monthly payment for the duration of that loan will not change. On the other hand, renters are not protected from rapidly rising housing costs.
Increase in Property Value
When you buy a home, it’s often with the goal of making a long-term investment. While the rising mortgage rates and home prices mean that buying a home today costs more than it did a year ago, you can still set yourself up for long-term investment success. Purchasing today means you’ll be shielded from future rate increases while enjoying the potential gains in your home’s value. Traditionally buying a home is a wise long-term investment because tangible investments like real estate often increase over time.
Ready to Lock In Your Interest Rates?
In an economy with rising inflation rates, homeownership is one of the best decisions you can make. Not only will you lock in a stable monthly payment, but you also have the added benefit of owning your home at a time when experts are forecasting that home prices will continue to rise.
We’re also offering a special mortgage rate buy-down special! We’ve teamed up with Guild Mortgage for a rate buy-down with additional incentives. Stay tuned for more updates on this exclusive special offer!
Your new home is within your reach! Our Concierge Team is available seven days a week and can answer any questions you have to help kick-start your home-buying journey. Call us at 775-379-8100 or email Concierge@JCommunities.com to get started!