Source: US News —
The Covid-19 pandemic helped spur one of the biggest housing boom cycles in history. In 2020, the Federal Reserve slashed interest rates to zero, dropping mortgage rates into the 2% range. Artificially low numbers coupled with the new remote work trend pushed more people to buy more homes in relatively far-off places.
In 2023, we are facing a far more challenging market. The Fed is raising rates to help curb inflation, and mortgage rates have nearly doubled from what they were a year ago.
If this complex economic scenario has you scratching your head and checking your bank account, you are not alone. Many people are now facing a housing affordability crisis – but not all is lost. There are certain steps you can take to help figure out exactly how much house you can afford, and if now is the right time to buy:
- Get your finances in order.
- Shop around for loan options.
- Stick to the 28/36 rule.
- Find the silver lining.
Get Your Finances in Order
Before you even think about buying a home, make sure your financial house is in good order.