Spring has just about arrived, and if that news wasn’t good enough; it’s also a great time to purchase a home. Want to know why? Well let me tell you:
Prices are Only Going to Increase
According to CoreLogic’s most recent piece on home prices in the United States, properties have increased in value by 4.4% within the last year. They also predict that these prices will only continue to rise at a rate of over 4% over the course of the next year. So if you’re looking to buy, you may want to do it sooner rather than later.
Mortgage Rates are Expected to Climb
A recent primary market survey conducted by Freddie Mac states that average rates for a fixed rate, 30 year mortgage are nearly 4.5%. Industry experts are envisioning rates rising over the next year. Both, Freddie Mac and Fannie Mae, as well as the Mortgage Bankers Association are expecting rates to jump within the year.
A rise in interest rates means a more expensive mortgage payment. If you’re planning on taking out a mortgage, you’ll want to try and do it when rates are low.
No Matter What, You’re Paying Somebody’s Mortgage
Many of those who rent are hesitant to purchase a home because of the responsibilities that come along with taking out a mortgage. The fact of the matter is you’re either paying for own mortgage, or you’re paying for your landlord’s.
Additionally, a homeowner’s mortgage is essentially a “forced savings” that allows you to build up your home equity, that you’ll hopefully be able to use later in life. If you’re renting, you’re only helping your landlord build equity. So why not build your own equity? Especially when rent is on the rise too
The Time to Act is Now
The two biggest factors in determining the ‘cost’ of property are the price of the home, and mortgage interest rates. If trends continue, we’ll see soon see a rise in both. If you’re considering buying a home in the future, it may be a good idea to sit down and really consider if waiting is going to be worth it. Now may be a better time to buy than you realize.