HOUSTON – No doubt mortgage rates have increased substantially, but some experts believe that can be a huge advantage for first-time home buyers.
“When you’re paying rent somewhere, you’re paying a 100% interest rate, so what’s a six percent interest rate,” said Tricia Turner CEO of Tricia Turner Properties Group. “When you’re paying rent, you’re paying someone else’s mortgage. How do you build wealth like that?”
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Buying property is one of the safest ways to invest your money.
While the pandemic was good for the housing market, it pushed first-time home buyers off the playing field.
“During COVID, we watched prices escalate, we watched multiple offers coming in,” Turner said. “20, 30, 40 offers on a property, basically it bumped first-time home buyers out of the market.”
But higher mortgage rates can mean fewer buyers with more inventory to pick from.
If you’re a first-time home buyer, you could qualify for various programs and grants.
“There are even 100% financing programs now for first-time home buyers with grants,” said Turner. “So, you can literally get into a house right now in today’s market with zero down, and possibly help with your closing costs to bring your rate down, which is crazy.”
Some experts believe the housing industry is teetering towards a buyer’s market and now is the time to act.
“If your thoughts are I want to buy a home, get out now while there are fewer buyers and sellers feeling it. They’re anxious to sell, so they’re willing to deal,” Turner said. “They’re going to deal with you less when there is less competition and more buyers.”
If you’re thinking about becoming a first-time homeowner, talk to reputable lenders and realtors to see what you might be able to qualify for.