NerdWallet: If you want to buy a home or invest in 2023, ask yourself these 4 questions first

by | Dec 30, 2022 | Stock Market

This article is reprinted by permission from NerdWallet. The investing information provided on this page is for educational purposes only. NerdWallet does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments. It has been quite the year. In 2022, we’ve lived through high inflation, stock market lows, housing market frenzies and ongoing Federal Reserve rate hikes. Although we don’t have a crystal ball to predict what will happen to the economy next year, we could use this year’s events as a guide: Things may continue to be rocky. 

See: Fed bets on strong jobs market to keep U.S. out of recession If homeownership and investing are on your 2023 goals list, here are some questions to ask yourself before whipping out your spreadsheet, money apps or notebooks. What am I willing to sacrifice in terms of space? Whether you have a goal of buying a new home or renting a new place next year, there’s a lot to consider. For instance, 30-year fixed mortgage rates went from an average of 3.45% in January to 6.90% in October thanks to inflation and Fed rate increases. The Fed raised interest rates by 75 basis points four times in 2022. More recently, the Fed increased its benchmark rate by 0.50 basis points. This, coupled with housing shortages, has driven the national median price of homes above $400,000 for the first time, according to the National Association of Realtors.  Homeownership may still be an attainable goal, but  you might have to make some sacrifices, says Zaneilia Harris, a certified financial planner and president of Harris & Harris Wealth Management Group in Upper Marlboro, Maryland.  “You need to evaluate what you are willing to give up in space in order to own property,” Harris says. “You may have to gradually get to where you want, as opposed to just going straight into a single-family house.” This could mean starting off with a condo or townhouse and then using the equity from the condo to purchase y …

Article Attribution | Read More at Article Source

Share This