the 2022 housing market has been defined by rising mortgage rates. With rates
on the rise, it’s also become more costly to purchase a home. According to the
National Association of Realtors (NAR):
to one year ago, the monthly mortgage payment rose to $1,944 from $1,265, an
increase of 53.7%.”
thinking of buying a home or have been trying to recently, that’s a big
increase in a monthly mortgage payment – and it may be causing you to press
pause on your plans. This jump is making homes less affordable, especially
compared to the last two years when mortgage rates were at historic lows.
news is you can navigate today’s housing market and this rising rate
environment with a few simple tips. Here are three things you may want to
consider to help make your homeownership goals a reality.
Your Search Area and Criteria
been looking for a home in the city center or a specific area that’s starting
to feel out of your price range, you may want to try looking a little further
out in a location that could be more affordable. Expanding your search location
or re-prioritizing the items on your wish list can open up opportunities you
haven’t considered, and that could help you afford more of what you need (and
want) in a home. As CNET notes:
growth is likely to keep pace with the market, which means that the outskirts
of town might be hopping within five years. Consider stepping out of your ideal
location by searching in the nearby cities. You may find better prices and more
Explore Alternative Financing Options
a trusted lender to learn about the different loan types and options is
essential too. According to Nerd Wallet:
variety of mortgages are available with varying down payment and eligibility
how to point you in the right direction when it comes to exploring ways to find
the best home loan for your situation. With rising mortgage rates making it
more costly to finance a home today, there may be an ideal option out there
your loan officer can introduce you to. This could make a home purchase more
affordable and within your financial reach over the life of your loan.
for Grants, Gift Funds, and Down Payment Assistance
also many options available when it comes to securing the funding you need to
purchase a home. One valuable resource to explore is downpaymentresource.com.
Searching for specific down payment assistance options available in your local
community could be a game changer when it comes to taking your first step
toward homeownership. As NAR indicates:
local governments and non-profit organizations offer down-payment assistance
grants and loans, targeted to area borrowers and often with specific borrower
are programs and special benefits for individuals working in certain
professions or with unique statuses, including teachers, doctors and nurses,
that means there are many federal, state, and local programs available for you
to explore. The best way to do that is to connect with a local real estate
professional and your lender to learn more about what’s available in your area.
been searching for a home and have found yourself stepping out of the process
because you’re worried about rising costs, let’s connect. Having a team of
local advisors on your side may be just what you need to guide your search in a
new and more affordable direction.