Instead of buying a new home, which can come with a hefty price tag and an unfavorable mortgage, many owners are deciding to invest in the houses they already have.
Home improvement spending has surged, with a focus on large-scale renovations on the most important parts of the house. As Brad Hunter of The Washington Post reports, requests for whole-kitchen, whole-bathroom, or whole-house remodeling are up 67 percent versus this time a year ago.
NAHB, the Harvard Joint Center, and HomeAdvisor have all indicated current or future growth in remodeling spending. Hunter believes home-improvement spending will rise even further due to an uptick in mortgage rates in the near future. Owners that have a low 3.5 percent rate, for instance, will find it more feasible to invest in current property than to buy a new residence with a 5 percent mortgage.
