Homeownership as a Hedge Against Inflation
If you’re thinking about selling to make a move this summer, you may be wondering if the recent news about rising inflation should impact your plans. The good news is, history shows homeownership is usually a strong hedge against inflation.
Your Next Home Will Give You Lasting Stability
With inflation reaching its highest level in 40 years, it’s more important than ever to think about stabilizing your expenses wherever you can. If you want to move up into your next home, know that doing so sooner rather than later may be the key to get what you want. When you move, you can lock in your largest monthly expense - your mortgage payment -before prices climb higher. This protects you from increasing housing costs for the foreseeable future. So, while prices for other goods and services like groceries, gas, and more could put a pinch on your wallet, you can secure a stable housing payment even as those other items rise in cost around you.
A fixed-rate mortgage allows you to maintain the biggest portion of housing expenses at the same payment. Sure, property taxes will rise and other expenses may creep up, but your monthly housing payment remains the same. - James Royal, Senior Investing and Wealth Management Reporter, Bankrate
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