There’s a lot to consider when buying a home this year, from rising mortgage rates to housing inventory. If you’re thinking about testing the home market, this article has important information to consider. Let’s take a look at the top things you should consider for the housing market this year. 

The Housing Trend 

April of this year was the first time in four months home prices and sales of new homes decreased. However, due to the ongoing shortage of homes, many experts predict that prices will still go up this year, but at a slower pace. 

Another issue affecting the housing market is high mortgage rates. The Federal Reserve has hiked interest rates several times this year to stop inflation, causing a slight drop in mortgage rates. However, rates are still 2% higher than at the beginning of 2022. So homebuyers should expect their payments to be higher this year, even if there is decreased demand for homes overall. 

Buy Now Or Wait? 

There are two things to consider when deciding between buying now or later — high prices and home loan rates. Although mortgage rates are constantly changing, most experts believe they will stay at 5-6% for the rest of the year. 

Be sure that you’re looking ahead to get the big picture financially. Meaning, take into account not only the cost of the home, but the fixed mortgage rate you’re singing onto. You could be spending more money in the long run on a “cheaper” home if you’re locked into a payment plan with a higher interest rate. 

What’s Your Goal? 

Becoming a homeowner is still a reliable way to build wealth, because you’re building equity in your home each time you pay the mortgage. Keep that in mind when you’re unsure if homeownership or renting is the best way to go. You can’t build wealth in the same way when you’re renting a property. 

It’s a good idea to know how long you plan on living in your new home as well. If your goal is to stay there for 10 years or more, you’ll probably be able to refinance your mortgage. But if you’re only going to end up staying there for a few years, an adjustable rate mortgage is more likely the best option. 

Market Moves

It’s a tricky year to decide whether to buy a home or not. Periods of high inflation can cause interest rates to be unpredictable. Renting a home could potentially cost you more money in the short term, as landlords can raise your rents to combat inflation. So be sure you’re researching your mortgage options carefully. Realtor.com is a great source of housing market information, so you can be sure that you have all the information before making a decision.