What to do when it feels like you’re never going to buy a home

We know that for many people becoming a homeowner feels more challenging than ever. After all, inflation is high, interest rates are rising, and housing prices are much higher than they were for previous generations. It can feel overwhelming and difficult for many people looking to enter the housing market.

We believe in the dream of homeownership and that it is possible for you. So to help you feel more confident about becoming a homeowner sooner rather than later, we’ve assembled a few things to share with you that might help you feel more optimistic about buying a home.

• Housing prices are decreasing slowly. Yes, houses are much more expensive than they were for your parents. But that doesn’t mean that they are not affordable. Even though housing prices remain higher than last year (mainly due to inflation), trends show they are slowly decreasing. For example, assessments from both Zillow and Redfin found that even though prices rose in the first half of 2022, since then, they’ve slowly started to drop, and that trend is expected to continue. Yes, it would be nice if prices dropped dramatically, but the real estate market is a lot easier to navigate when prices are sluggish and slow, so it may be a good thing that no big surprises are expected anytime soon.
• Higher interest rates can help protect you. Paying a higher interest rate on your mortgage seems like a bad thing. But it’s a tool that can help you. Many people get into trouble with low-interest mortgages by taking on too much debt and buying a house they can’t afford. Then when interest rates rise, they cannot afford their mortgage and have to sell their home. But if you buy at a lower price point with a higher interest rate, you wouldn’t be stuck with a house you can’t afford to pay off, and you can refinance to a lower rate when you have more equity and collateral built up in your home.
• There are mortgage options to help you buy now. Another positive of purchasing a home now is that plenty of mortgage options are available to help you become a homeowner. Tools like a USDA home loan can help you buy in a rural area, or if you are a veteran, you may qualify for a VA home loan. These are just a few of the available mortgage tools. There are plenty more that we can explore to find the right one for you.

As negative as the headlines may be these days, the only one who can determine if buying a home now is the right choice for you…is you. So book a consultation with your local PRMI loan advisor, and they’ll walk you through your options so you can feel confident about becoming a homeowner sooner rather than later!