What temperature is your water heater set to? Do you know? Most homeowners might not be aware that there even is a setting to change this, while others just crank it up as high as it can go to make sure that they have plenty of hot water, but this is definitely not necessary. In fact, setting your water heater to 120 is ideal in most cases, but since your heater can go as high as 160, you might want to be careful with that dial.
Having your heater set too high can cause scalding, and it will waste a lot of energy since the heater will keep the water at that temperature whether or not you are using it.
While the dial is there to allow you to adjust the temperature to ensure that you have hot water, even if it has to travel through a long pipe to get to your faucets, you should be careful with how you set it.