$375

Plus, Is buying a home a good investment? + Beyond Airbnb

͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌  March 26, 2022 | Issue #35

Good morning! This week were talking about the pros and cons of rising mortgage rates, whether buying a home is a good investment and how to make money from your house — without selling. $375 Kiersten Essenpreis for Money Today's homebuyers face a one-two punch of higher mortgage rates and higher home prices. In fact, someone buying a median-priced home right now would need to spend $375 more on monthly mortgage payments than if they had bought a median-priced home a year ago. That means paying an extra $135,000 over the course of a 30-year loan. That's no small amount. But while higher rates are dealing a blow to housing affordability in the short term, they may actually prove to be good for the housing market in the long run. Huh? Bear with me. This week, mortgage rates reached 4.42%. Yes, that's way above the sub-3% rates borrowers enjoyed for much of the last two years, but in line with average rates over the last two decades. Just as super low rates fueled high demand and high prices, higher rates could cool the market a bit. "Rising rates may help tamper down demand somewhat to the point that it would help the housing market look more normal," says Ralph McLaughlin, chief economist at Kukun, a real estate and data analytics company. "We are certainly in an extremely abnormal market." There are limits to this logic, of course. Some in the industry worry rates consistently above 5% would spook too many buyers since rates haven't been that high since 2010. McLaughlin, for his part, believes rates would need to get above 7% or 8% before home prices start to decline. For now, remember that while rates are not as low as they were a year ago, "they're still pretty darn good," he says. For more: 4 Reasons Higher Mortgage Rates Are Actually Good for Homebuyers A different take. Is buying a house a good investment? Money; Getty Images A small but growing share of Americans aren't convinced. In February, 12% of people surveyed by Morning Consult said purchasing a home in their neighborhood is a bad investment — up 4 percentage points from the same month last year. This is a bit surprising, given that in the same survey 62% of people said they expect housing prices to increase over the next year, up from just 40% a year ago. Morning Consult offers a few explanations for this pessimism. First is, you guessed it, rising interest rates. Consumers, the report notes, "may feel that they missed the boat for affordable loans." People may also see home prices as too high to justify buying, especially in the face of soaring inflation. In other words, people may feel their money would be better spent elsewhere. For more: As Home Prices Soar, More People Say Buying a House Is a Bad Investment Beyond Airbnb Errata Carmona for Money If you already own a home, I hope you feel it was a good investment. Chances are it's worth more than you paid thanks to rising prices. In the event that it's not more valuable, hopefully it's a nice place to live in. Regardless of how you feel about your home, there are likely ways you can earn money from it and sweeten the deal. You probably know that you can rent out a room on Airbnb, but did you know other websites let you rent out spare parking space? Or that someone might pay you to shoot a commercial or TV show on your property? Last summer, some homeowners earned six-figures letting people take over their pools for a few hours at a time. How's that for return on investment? For more options and tips read: 6 Ways Your Home Can Make Money for You (No Sale Required) Plus: 5 Home Improvement Projects That Are Easy and Affordable. The seizure of Venable's land In 1956, a Black doctor named Howard Phillip Venable bought land in Creve Coeur, Missouri. He paid in cash and started building a ranch-style home where he planned to raise his family. The city had other plans, using eminent domain to seize Venable's property and turn it into a park. This was a common story in the last century as cities fought to keep neighborhoods segregated. In an episode about the incident, the design podcast 99 Percent Invisible explains that even New York's Central Park was a Black neighborhood before it was taken over via eminent domain. In recognition of this history, the park in Creve Coeur was recently renamed Dr. H. Phillip Venable Memorial Park. Venable's descendants and advocates see this as a start, but many believe Black people should get more in restitution from land taken from their ancestors. If you believe your family's land was unfairly taken, you can register it with a new organization called Where Is My Land. The group is creating a database of taken land and hope it will help Black families get recognition and maybe even reclaim property. Happy hunting, P.S. Share your tips from making money from your home with me on Twitter @samsharf or via e-mail at sam.sharf@money.com. P.P.S. Have a friend who loves real estate or is looking for a home of their own? Please forward them this e-mail or send them to the Money Moves subscription page. Money's Essential Home Buying Resources: Spring 2022 On the hunt? Check out Money's Mortgage Calculator, list of The Best Mortgage Lenders and look at the latest mortgage rates Thinking of refinancing? Our list of The Best Mortgage Refinance Companies can help. You can also use our Mortgage Refinance Calculator or these refi tips Key question: How much house can I afford?

This newsletter is free because Money earns a commission when you click or make purchases from the links in this email and on our site. We also receive compensation for some of the products and services featured in this message. Offers may be subject to change without notice. Learn more about how we make money. Privacy Policy • Advertise With Us • We're Hiring! To stop receiving these emails, unsubscribe or manage your email preferences. Copyright ©2022 Ad Practitioners, LLC. All rights reserved. Metro Office Park Calle 1, Building 7 Suite 204, Guaynabo, Puerto Rico 00968, USA