As U.S. Feds raised interest rates to curb inflation, pushing up mortgage costs, the decision to buy a new house has become more difficult for average Americans.
The new interest rates have also driven up bond yield which sets the tone for a mortgage. Currently, the mortgage costs shot up at the fastest clip since 1987 last week, with the 30-year rate hitting an average of 5.78% on Thursday.
As the housing market continues to get volatile, home improvements and maintenance also become much less affordable due to rampant inflation.
According to a recent report by Hippo Insurance’s 2022 Homeowner Preparedness Report, 60% of homeowners say they are less comfortable making large purchases for their homes because of the rising price.
The survey of more than 2,000 U.S. homeowners was done to learn about housing market trends affecting the current and future American homeowners.
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The survey found that homeowners are even more hesitant than in previous years to start or complete home maintenance projects. Nearly 43% either strongly (14.4%) or somewhat (28.4%) agree that inflation has caused them to delay planned home improvement or maintenance projects.
The Federal Reserve will continue to raise the interest rates in the coming months to batter inflation. This will make financing for home improvements more expensive.
In 2021, homeowners spent an average of $4,000 on home repairs. Almost 74% of homeowners pay for the things as they arise while only 15% set aside money each month to cover home repairs expenses, the Hippo survey showed.
If you’re unsure where to start when it comes to key home maintenance, you can check out our guide here. It has some of the best ways to finance home improvement.
If you have a bad credit score and looking to make your home renovation project a success, find out how one can get a home improvement loan for bad credit.