LOS ANGELES (KNX) — As crazy as it may sound, now might be the time to buy a house if you’re in the market. Real estate experts acknowledge that inflation in the United States has soared - hitting 6.2% last month - but they say mortgage rates have escaped the impact. Something they have never seen before.
Jeff Lazerson, president of Mortgage Grader in Laguna Niguel, joined KNX In Depth to explain the financial phenomenon.
“There’s $2.3 trillion dollars in the U.S. in excess savings since the pandemic started. So it just doesn't move the mortgage needle,” Lazerson said.
“So even though other prices go up, people are chasing that yield on the mortgage bonds so they just throw money at it and it keeps the rates down.”
But aren’t house prices way, way up? Yes, Lazerson said, but if you’re planning to buy and live in your new home for more than a few years, he said to go for it.
“If you're a long term player and want to buy and hold for five years...buy now don’t rent.
Renting is so expensive anyways,” he said.
“If you can put some shekels together and buy a place — go in with your folks or a friend, you should do it because over time, historically home prices do go up. It’s a safe long term investment unless you think you’ll be there for less than five years.”
As far as the coming trends, Lazerson said he’s still predicting what mortgage rates will look like in 2022. Initially, he thought they’d be up about 3.5% or 4%, but said the way the market is looking now, he’s not so sure.
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