Russia’s invasion of Ukraine has many people questioning how far-reaching the impact of these events may be. This includes potential homebuyers in the US, as they are wondering how it will affect the economy, and more specifically, the real estate market.
Rising Gas Prices
As the global conflict continues to escalate, one area of the economy that’s already been affected is energy costs. Oil prices spiked amid the crisis overseas and helped to drive the growing inflation in the US. Rising inflation tends to slow job growth, limit pay raises, drive up commuting costs, and reduce the amount of income Americans have available to save for purchasing homes.
If saving for a down payment is your only barrier keeping you from homeownership, there are zero down loans and down payment assistance loans available. One thing to remember as a potential homebuyer is that the cost of renting a home can be impacted by inflation and rising energy costs as well. It may be in your best interest to lock in a low rate to purchase your own home and avoid the volatility that inflation and rising gas prices could bring to renters.
How Buying a Home Can Protect Your Finances During Rising Inflation
The Rise in Mortgage Rates is Slowing
The beginning of 2022 brought a slight uptick in mortgage rates as the Federal Reserve pushed rates up to fight inflation. However, we’re already seeing the impact of the Russia-Ukraine conflict bring uncertainty to the US economy and slow the rise of mortgage rates down.
The slowing of growth in mortgage rates may be a silver lining for potential buyers as it could result in smaller monthly payments even though home prices are high. It may be a good time to talk with a Michigan mortgage lender about what programs and rates make financial sense for your homeownership goals.
Broad Outlook on Housing Market
According to Redfin, even with the current uncertainty within our economy, the US housing market remains relatively unchanged. Redfin predicted that home sales and sale-price growth will slow slightly in 2022 amid small increases in mortgage rates. Redfin also reported that there has been an increase in homes available on the market over the past few weeks, which may provide some relief for those looking to purchase a home in 2022.
About Michigan Lender, Julie Krumholz
Julie Krumholz is has been helping Michigan homebuyers for over 30 years and has several loan programs available for various incomes and financial situations. She brings a wealth of experience to her clients and nothing makes her happier than seeing the face of a happy and excited customer at the closing table.
If you are looking for a mortgage lender in Michigan, call Julie from Superior National Bank today at: 586-382-5482 and let her help you navigate through the loan process and answer any questions you may have.
