Buying a Home with these Interest Rates

Interest Rates and Buying a Home:  I’ve heard buyers express concern over buying a home with the current interest rates in play. Purchasing a home now can still be a smart investment even with these interest rates.

1. Interest rates change.  The housing market is rebalancing and even though interest rates are higher than they were, they are still historically low.  When interest rates are lower, house prices are higher.  When interest rates increase, house prices settle down.  Mortgages can be refinanced to a better interest rate, but the price a buyer pays for a house does not change.  Always remember, “you marry the house, but you date the interest rate.”
2. Potential for Appreciation: Over time, real estate generally appreciates.  The value of a house is likely to increase in the future.  This provides buyers with a solid return on their investment and helps to build the buyer’s wealth.
3. Homeownership provides stability. Security and stability are important and homeownership offers both.  Homeowners can make the changes to their property that suit their needs and desires.  They develop pride of ownership and make improvements that increase the value of their investment.
4. Tax benefits:  Mortgage interest and a portion of property taxes can be deducted.  These benefits help to lower a homeowners overall tax burden and they provide additional savings.

In conclusion, buying a home can still be a smart investment, despite higher interest rates.  Interest rates change and loans can be refinanced to lower interest rates. Home ownership offers the potential for appreciation, stability and security, and tax benefits that offer additional savings.