4 Reasons to Buy a Home This Summer
Summer is here! Along with the temperature, the housing market is heating up. Consider these 4 reasons to buy a home today instead of waiting until the fall.
1. Prices Will Continue to Rise
CoreLogic’s latest Home Price Index reports home prices have appreciated by 5.9% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 5.3% over the next year.
The bottom in home prices has come and gone. Home values will continue to appreciate for years.
2. Mortgage Interest Rates Are Projected to Increase
Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have remained around 4%. Most experts predict that they will begin to rise over the next 12 months. An increase in rates will impact YOUR monthly mortgage payment. The higher your interest rate, the less home you will be able to afford.
3. Either Way You are Paying a Mortgage
The Joint Center for Housing Studies at Harvard University explains:
“Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return. That’s yet another reason owning often does – as Americans intuit – end up making more financial sense than renting.”
4. It’s Time to Move On with Your Life
The ‘cost’ of a home is determined by the price of the home and the current mortgage rate. It appears both are on the rise. Look at the actual reason you are buying and decide if is truly worth waiting.
Real Estate Bottom Line
If the timing is right for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.