When to Buy a Home
4 Reasons to Buy This Winter
Think the housing market cools down during the holidays and throughout winter? Think again! Here are 4 reasons you may want to purchase your next home this winter instead of waiting for spring.
1. Prices Will Continue to Rise
CoreLogic’s latest Home Price Index reports home prices have appreciated by 6.3% over the last 12 months. It predicts prices will continue to increase at a rate of 5.2% over the next year. Waiting does not makes financial sense.
2. Mortgage Interest Rates are Projected to Increase
Your monthly housing cost is related to the price you pay for your home plus your mortgage mortgage interest rate.
Freddie Mac’s Primary Mortgage Market Survey shows interest rates for a 30-year mortgage are currently at 4.08%. The Mortgage Bankers Association, Fannie Mae, Freddie Mac & the National Association of Realtors all project mortgage rates will increase during 2017.
An increase in rates will impact your monthly mortgage payment. A year from now, your housing expense will increase if you need a mortgage to buy your next home.
3. Whether Your Rent or Own, You’re Paying a Mortgage
Some renters have not yet purchased a home because they are uncomfortable taking on the obligation of a mortgage. Unless you are living with your parents rent free, you are paying a mortgage – either yours or your landlord’s!
As a homeowner, your mortgage payment is a form of ‘forced savings’ that allows you to build equity in your home. As a renter, you guarantee your landlord is the person with that equity.
4. Move on with Your Life
The ‘cost’ of a home is determined by 2 major components: the price of the home and the mortgage interest rate. It appears both are on the rise. But what if they weren’t? Would you wait?
Look at the actual reasons you are buying a home and determine whether it is worth waiting.
Real Estate Bottom Line
If the right thing for you and your family is to purchase a home, buying sooner rather than later could lead to substantial savings.