Despite a rise in interest rates beginning earlier this year, home price increases remain on the move.
A decline to home price appreciation was nonexistent in two major surveys, including one conducted by the Federal Housing Finance Agency. In fact, both indices showed gains between 11% and 12% year over year.
Throughout the nation, home appreciation rose by impressive double-digit percentages as the real estate market continues to thrive. And home price gains are widespread.
A direct line can be drawn between the housing market’s sustained strength and the recovering economy, which features new jobs, bigger savings accounts, greater buying power and relatively low mortgage interest rates.
With a new mindset shaped by the pandemic, buyers are flocking to suburban areas and away from denser neighborhoods in search of a home. Buyers are rushing into home buying and accelerating purchases. These buyers would have entered the market over the next couple years anyway. They are not the only driving force to the strong housing demand. Other factors could dramatically change the real estate landscape long term.
Regardless of the primary reasons that motivate today’s buyers, one thing is clear: Home price and home appreciation increases are showing little signs of slowing down.
This is terrific news for homeowners who can put their growing equity to work for them.
A home equity loan extends to homeowners an opportunity to borrow a large sum of money, which can be used for big expenses like home improvement projects, education costs, debt consolidation and more. Equity can be a powerful tool. And unlike other types of loans, homeowners may find a clearer path toward approval with a home equity loan program.
Homeowners can do the financing by folding in the cost into their mortgage, enjoying predictable payments that are fixed and locked in on at a low rate.
Lenders will distribute funds in a lump sum for optimal financial flexibility. In addition, homeowners can deduct interest paid on the loan depending on how the funds were used.
They can also apply for a home equity line of credit for a lender-approved limit. They can then withdraw funds as they see fit.
If you’re in search of a little extra financial wiggle room, you can turn to home equity for multiple solutions. Converting equity into cash is a powerful way to reach your financial goals, save money and pay for the next big dream.