CHARLOTTE, N.C. — With the economy facing an uncertain future, many experts say now is one of the worst times to buy a home.
The data bears that out, too. According to a report from the Wall Street Journal, home sales are down by about 15% as mortgage rates are holding steady at 8%.
As a result, many people who were considering buying a house are now looking for new ways to invest that money. Economic experts say there are three ways we're seeing it play out now with consumers holding off on a down payment for their dream home.
Perhaps not coincidentally, the data firm ISS Market Intelligence says the number of certain college savings plans, called 529s, went up by the same percentage that home sales dropped. Also, if you're a parent saving for your kids' college, you may want to consider starting a 529 plan, which allows tax-free investments and withdrawals for qualified education expenses.
For those who already bought their starter home in the past couple of years, some are spending their savings on improving what they've already got rather than moving to a bigger or better home. In fact, data shows one of the top reasons Americans are taking on more debt is to cover the cost of home upgrades.
WCNC Charlotte is always asking "where's the money?" If you need help, reach out to WCNC Charlotte by emailing money@wcnc.com.
Plus, with home buying becoming more out of reach, some are choosing to spend on vacations and luxury purchases instead. It's another factor throwing off the economy's bigger picture.
Contact Kia Murray at kmurray@wcnc.com and follow her on Facebook, X and Instagram.
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