When interest rates are higher, the cost of borrowing money to purchase a home increases, which means that the monthly mortgage payments will also be higher. However, there are still several reasons why someone might choose to buy a home when interest rates are higher:

1. To lock in a fixed rate: When interest rates are higher, buyers may want to lock in a fixed rate on their mortgage to protect themselves from future rate increases.

2. To take advantage of the market: While higher interest rates may make buying a home more expensive, they can also mean that there are fewer buyers in the market, which can create an opportunity for buyers to negotiate a lower price.

3. To invest in the future: Buying a home is often seen as a long-term investment, and buyers may be willing to pay a higher interest rate in order to own an asset that is likely to appreciate in value over time.

4. To enjoy the benefits of homeownership: Homeownership offers many benefits, such as the ability to customize your living space, build equity, and establish roots in a community.

Ultimately, whether or not it makes sense to buy a home when interest rates are higher depends on a variety of factors, including your financial situation, your long-term goals, and the state of the real estate market. It is important to carefully consider all of these factors before making a decision.

Information courtesy of Keller William Realty New England Region

Stowe Area Realty's Graham Mink is part of a team working to reform — and improve — affordable housing in Lamoille County.

Read some of the ideas and outcomes from the panel discussion in this week's edition of the Stowe Reporter/News and Citizen:

What to do?

Nine Lamoille County leaders were on a panel that batted around ideas for affordable housing reform, reflecting on Doug Kennedy’s findings.

“It’s not a secret the permitting process is a challenge” for housing development, said Graham Mink of Stowe, who owns Green Mountain Management.

But he says that, since rent has gone up in many parts of the county, it “makes it worth it as a developer” to construct long-term rental buildings.

Read more in "Housing trouble: Rents on the rise."

Home ownership has many advantages, both personal and financial, but buying a home is an important decision. Understanding the differences between renting and buying can help you decide if it is the right time to make the leap.

Benefits of Home Ownership:

• Tax savings: You may earn significant tax savings because you can deduct mortgage interest and property taxes from your federal income tax as well as many states' income tax if you itemize your deductions.
• A stable monthly housing expense: Your monthly housing loan or mortgage expense can remain the same for the life of your mortgage, depending on the type of loan you choose.
• Equity: You may build equity in your home over the life of your loan, which allows you to plan for future goals like your child's education or your retirement.
• Personal satisfaction

Your home can be a great source of pride and satisfaction - giving you peace of mind that you've built a solid foundation on which to build your future.

Think you might be ready? Have more questions? Please don't hesitate to contact us.

We look forward to hearing from you,

Stowe Area Realty can show you any listed property in Vermont !!