Advice for Renters Priced Out of Homebuying
This article was first published on NerdWallet.com.
Today's housing market can feel like a dream killer.
Rising mortgage rates, high home prices and a shortage of properties for sale deliver a one-two-three punch.
If you've been knocked out of one too many deals and need a timeout, here's how to regroup and keep the homeownership dream alive.
Give yourself a break
Given the rise in home prices and interest rates, the monthly mortgage payment for a median-priced single-family home with a 10% down payment has jumped by about $800 since January, according to a June 2022 National Association of Realtors press release.
That's huge.
It's OK to hit pause if you're frazzled to the point that you can't think clearly or are simply priced out.
"If it doesn't feel right to you … step away and give yourself some breathing room," says Catalina Franco-Cicero, a certified financial planner with Tobias Financial Advisors in Plantation, Florida. "It's OK to do that."
But stepping back doesn't mean giving up.
"One thing we tell people with any goal that you have is that there's a big difference between 'no' and 'not yet,'" says Nathaniel Moore, a certified financial planner and president of Agape Planning Partners in Fresno, California.
Strengthen your finances
View the break as an opportunity to get your finances in even better shape.
Budget like a homeowner
Use a mortgage calculator to...