Here are four reasons to consider buying today instead of waiting.
1. Prices Will Continue to Rise
Home prices have appreciated by 3.7% over the last 12 months and they are projected to continue to increase at a rate of 4.8% over the next year. It's a fact that home values will continue to appreciate. Waiting may no longer makes sense. (Corelogic's report)
2. Mortgage Interest Rates Are Projected to Increase
Freddie Mac’s Market Survey shows that interest rates for a 30-year fixed rate mortgage have started to level off around 4.3%. Most experts like Fannie Mae and Freddie Mac predict that rates will rise over the next 12 months by this time next year. An increase in interest rates will impact YOUR monthly mortgage payment. A year from now, your housing expense will increase if a mortgage is necessary to buy your next home.
3. Either Way, You Are Paying a Mortgage
Some renters have not yet purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that unless you are living with your parents rent-free, you are paying a mortgage – either yours or your landlord’s.
As a home owner, your mortgage payment is a form of ‘forced savings’ which 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 "forced savings". 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. But if they home prices and interest rates remain the same? Would you wait? Let's examine the actual reason you are buying home and decide if it is worth waiting. Whether you want to have a great place for your children to grow up, greater safety for your family, or you just want to have control over renovations, now could be the time to buy.
If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings. Visit us at hfamiami.com/homebuyers to learn about our first-time home buyers’ mortgage, low interest rates and down payment assistance programs. Note, information in this post was derived from Keeping Current Matters (KCM).