Many buyers in today’s market are wondering how they can afford homes when prices are going up so much. One thing to consider is that there is a difference between the price of the home and the actual cost of the purchase.
As you’ll see in the chart at 0:27 in the video above, the cost of owning a home has been going down or staying stagnant because interest rates have been very low. People in today’s market wish they could go back in time to purchase a home at a lower price than what it currently is, but our low interest rates actually provide the opportunity to buy a home for the same cost it would have been just a couple of years ago.
Simply put, our low interest rates have made buying homes more affordable. But why are rates this low?
The government has been printing money, and they’re using some of it to buy down the interest rates, but we know that can’t keep going forever. As soon as they stop doing that, we’ll definitely see a spike in interest rates, which is all the more reason to take advantage of our low interest rates now.
If you have any real estate needs or questions, don’t hesitate to reach out to us. We’re here to help you succeed.