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4 great reasons to buy a home today

Interest rates may be higher than usual but, for some buyers, it may still make sense to act now. Getty Images

It can be a tough market for many prospective homebuyers today — especially compared to the buyers' market of just a few years ago. Mortgage rates have risen to around 6% to 7% on average, while a shortage of homes actually for sale could be pushing sellers' prices up, too. 

But for some buyers, now can be a great time to buy. Depending on your market, your home buying goals and your individual financial situation — now could still be a good time find your dream home.

Start your home buying journey by comparing mortgage rates available today here.  

4 great reasons to buy a home today

Here are four reasons you shouldn't write off buying a home in today's market:

You can take advantage of rising home values

The sooner you buy your home, the more value you can gain from rising home prices. Over the past decade, home prices have been on a steady incline. Though they're currently down a bit after skyrocketing throughout the pandemic, home prices in the U.S. have a proven history of increasing over time.

As a potential homeowner, this means that buying a home sooner rather than later can help you begin to benefit from rising prices. But it also means you may not want to wait for any substantial drops in home prices.

"I've been hearing people say since 2013-2014 that the housing market was too high and that people should wait to buy until prices come down," says Colin Zizzi, CFP, founder of Zizzi Investments. "If you had listened to this advice, you would have missed out on 10 years of home price gains."

See what mortgage rates you can qualify for now!

You can start building equity

One of the primary benefits of homeownership is building equity in your home. As you pay down your mortgage over time, you're essentially investing money into the home. 

There are several advantages to building home equity. For one, it helps you grow your net worth using your home as an asset. Plus, it can be a resource to tap into for financing if you need it in the future. Home equity loans and home equity lines of credit (HELOCs) allow you to use your home equity as a lower-cost borrowing option for everything from future home repairs to debt consolidation and more.

You plan to refinance in the future

Mortgage rates today may be higher than they were a few years ago, but locking in a rate now doesn't mean you're stuck with that forever. 

Some experts believe we may be near peak mortgage rates, as the Fed signals it could be ready to slow its interest rate hikes as inflation subsides. Others say today's rates could be here to stay for a while. Regardless of where exactly rates go from here, a 15- or 30-year mortgage term is a long time — and you could get the opportunity to reduce your monthly payment and overall cost by choosing to refinance at some point. 

The most important thing to consider now is whether you can afford the monthly payment required. 

Start comparing mortgage rates available for you here to see what you could afford.

You find the perfect home today

Many experts we've spoken to agree that the overall housing market or rate landscape is less important for potential homebuyers than their individual housing needs. 

"People need places to live, and depending on the local market, there's no guarantee that house prices won't have increased substantially while you're waiting for interest rates to decline," Quinn Arnold, CFP, co-founder of Arnold and Mote Wealth Management recently told CBS News. Arnold adds: "Also, there's of course no guarantee that interest rates will go down anytime soon."

If you're prepared to buy and you find the right home for you and your budget, it could be worth taking the plunge on your purchase today.

The bottom line

Buyers today may face a more challenging housing market than we've seen in the past few years, but that doesn't mean you should stop your home search. There are plenty of reasons to buy a home when you're ready regardless of broader economic factors — including the opportunity to build equity and benefit from rising home prices. Plus, you may have the opportunity to refinance to a lower rate later on. 

Even today, you can still score a competitive rate if you shop around for different lenders and apply with great credit. If you're ready to buy, see what mortgage options may be available for you here now.

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