We’ve been getting a lot of questions lately about the housing market and how it’s going to be affected by the recent results of the presidential election. This isn’t a political topic, because the housing market isn’t about who is in office.
No matter who has been in the office, our market cycles in 10-year increments, and we are in year 10 from the most recent market tip in 2006.
The most important thing to pay attention to when looking to buy a home is what’s right for you when determining your mortgage payment and your interest rate. Homes haven’t been this affordable since the 1970s due to these low rates.
Since Donald Trump was elected president, rates have gone up. The 10-year bond has spiked. It remains to be seen whether that trend will continue. The Federal Reserve is meeting this month to determine whether to raise interest rates or not.
Even though we aren’t sure what the rates are going to do, we do know one thing about homeownership. According to statistics on median net worth for the average American, the average homeowner’s net worth is much higher than the average renter’s. The average net worth for a homeowner is $195,400. The average net worth for a home renter is $5,400. That’s a huge difference just for owning a home. We are big proponents of homeownership because of what it does for you in building wealth over your lifetime. There are great things that come with homeownership, like interest rates, tax writeoffs, and more.
If you want to get a plan going for owning a home, we can help. Whether you are dead-set on buying or just curious, give us a call or send us an email. We would love to hear from you.