It’s clear 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, housing affordability conditions fade as mortgage rates push monthly payments higher in June 2022.
“Compared to one year ago, the monthly mortgage payment rose to $1,944 from $1,265, an increase of 53.7%”
If you are 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.
The good 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.
1. Expand Your Search Area and Criteria
If you’ve been looking for a home in the city center or a specific area try looking further out. It may be more affordable. Expand your search location to open up other opportunities. That could help you afford more of what you need (and want) in a home.
2. Explore Alternative Financing Option
Work with a trusted lender to learn about the different loan types and options. Experts know how to point you in the right direction when it comes to exploring ways to find the right loan for you. Mortgage rates are making it more costly to finance a home today. There may be an option out there that your loan officer can introduce to you. This could make a home purchase more affordable and within your financial reach over the life of your loan.
3. Look for Grants, Gift Funds, and Down Payment Assistance
There are many options available to secure the funding you need to purchase a home. Explore https://downpaymentresource.com. Searching for specific down payment assistance options available in your local community could be a game changer. Plus there are programs and special benefits for individuals working in certain professions. So, that means there are many federal, state, and local programs available for you to explore.
Bottom Line
If you have been searching for a home and have found yourself stepping out of the process, let’s get together. I will guide your search in a new and affordable direction.