Rents in the US hit a new high in April, and they are expected to keep rising.
The national average rent was $1,827 a month in April, up 16.7% from a year ago, according to Realtor.com. Rent has been steadily increasing since early last year. If recent trends continue, the report projects the typical rent could be more than $2,000 a month by August.
For new applicants in April 2022, the median mortgage payment was $1,889, according to the Mortgage Bankers Association (MBA).
While home prices continue to climb, and interest rates have gone up as well, many home buyers are left wondering: Is buying a house still worth it in 2022?
The short answer is yes. If you’re financially ready, buying a house is still worth it — even in the current market. Experts largely agree that buying and owning a home remains a smarter financial move than renting for many.
If you’re on the fence about a home purchase in 2022, here are a few things to consider:
Benefits of buying a house in 2022
Despite the financial challenges of the current market, there are plenty of reasons why buying a home is still worth it in 2022:
1. Rising prices lead to increased equity
One of the top benefits of owning a home is that over time, increased home equity can add to your net worth and give you a low-cost source of cash as needed. The ability to build equity is what sets homeownership apart from renting, which has no return on investment. And remember, whether you rent or buy, you’re still paying someone’s mortgage. The question is who’s mortgage payment do you want to fund? Your own or your landlord’s?
2. Homeownership means fixed housing costs
What’s extra nice about buying a home with a fixed-rate mortgage is that even though the value of your home will increase, your monthly principal and interest payment will remain the same over the life of your loan.
3. Owning gives you opportunities renting doesn’t
These include:
- The ability to customize your home the way you see fit.
- Home equity that can be tapped via a home equity loan or home equity line of credit (HELOC). This money can be used to fund home improvement projects, pay off debt, cover the cost of a wedding or other major expense, or virtually anything you desire.
- The ability to claim a mortgage interest deduction on your taxes if you finance your property.
- The chance to build a stronger credit rating and improve your credit score if you finance a mortgage and pay your bills on time.
So, if you’re reading this and thinking, “What the woof? I’m ready to take advantage of these benefits!” Let’s get you started today!