Four fantastic reasons to think about buying a home today, instead of waiting:
1. Prices Predicted to Rise
CoreLogic’s latest Home Price Index reports that home prices have appreciated by 6.7% over the last 12 months. Over the next year, the same report predicts that prices will continue to increase at a rate of 5.0%.
Waiting to purchase a home no longer makes sense, the time is now. Years of appreciation are ahead of us and the bottom in home prices has come and gone. Home values will continue to appreciate for years to come.
2. Mortgage Interest Rates Projected to Increase
Freddie Mac’s Primary Mortgage Market Survey shows interest rates for a 30-year mortgage have consistently hovered around 4%. Over the next year, most experts predict that rates will rise. The Mortgage Bankers Association, Fannie Mae, Freddie Mac and the National Association of Realtors are in tune, projecting interest rates will increase by this time next year. Your monthly mortgage payment will be directly impacted with an increase in rates. If a mortgage is necessary to buy your next home, a year from now your housing expense will increase.
3. Either Way, You Are Paying a Mortgage
There are renters who have not yet purchased a home because they are uncomfortable taking on the obligation of a mortgage or maybe they do not feel they can afford it. Everyone should realize that, unless you are living with your parents, relatives or friends rent-free, you are paying a mortgage – either yours or your landlord’s. Believe it.
Consider your mortgage payment as a form of ‘forced savings’ that allows you to have equity in your home. You can dip into equity later in life if you need to. As a renter, your landlord has that equity that YOU are paying into for them.
Now 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:
1) the price of the home
2) the current mortgage rate.
It would appear by looking at the market surveys and price indexes that both are on the rise.
But what if they weren’t, would you still wait?
Look at the actual reason you are buying and decide if it is worth waiting. If purchasing a home for you and your family is the right thing to do, then buying sooner than later could be a substantial savings for you in the long run. Do you want more control over your property, renovations, decorating and landscaping, then now is the time to look into buying.