Here are FOUR GREAT REASONS to consider buying a home today:
1. Home Prices Will Continue to Rise
The latest Home Price Insights report from CoreLogic shows that home prices have appreciated 7% over the last 12 months. That report also predicts that prices will continue to increase at a rate of 5.2% over the next year.
Home values will continue to appreciate for years. Waiting doesn’t makes sense.
2. Mortgage Interest Rates Will Most Likely Increase
Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have increased by half a percentage point already in 2018 to around 4.5%. Most experts predict that rates will rise over the next 12 months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac and the National Association of Realtors all project that rates will increase by nearly a full percentage point by this time next year.
Your housingexpense will increase next year if a mortgage is necessary to buy your next home, since an increase in rates impacts your monthly mortgage payment.
3. Either Way, You Are Paying a Mortgage
Renters who have not yet purchased a home because they are uncomfortable taking on the obligation of a mortgage should realize that, unless you are living with your parents rent-free, you are paying a mortgage – either yours or your landlord’s.
As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to have equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person with that equity.
Are you ready to put your housing cost to work for you?
4. It’s Time to Move on with Your Life
The “cost” of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise.
But what if they weren’t on the rise? Would you wait then?Look at the actual reason you are buying and decide if it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer, or you just want to have control over renovations, maybe now is the time to buy.