Buying a home is an incredibly exciting time in your life and it is a moment that must be well thought out and well prepared for in order for everything to go smoothly. For many, buying a home can take years of preparation, planning, and forethought. What we are here to tell you is that all of those years of hard work, all of those night spent planning and researching, and all of those countless dollars saved have brought you to this moment. What is this moment? This moment, right now, is the perfect time to buy a house. Need more? Here are 4 reasons to buy today: Prices Will Continue to Rise The Home Price Expectation Survey polls a distinguished panel of over 100 economists, investment strategists, and housing market analysts. According to the most recent report, it has been projected that appreciation in home values over the next 5 years will be between 30.8% and 9.4%. If you are waiting for the bottom to fall out in the housing market we regret to inform you that it has already come and gone. Houses will continue to climb meaning from this point on houses will only continue to get more expensive.
Mortgage Interest Rates are Projected to Climb Although the Primary Mortgage Market Survey shows interest rates for a fixed 30-year mortgage being around 4.2%, Freddie Mac is projecting that rates will increase to 5.2% by this time next year. When you combine the climbing mortgage rates with the growing home prices you can see how your monthly mortgage payments can quickly get out of control. Your housing expense will be more a year from now if a mortgage is necessary to purchase your next home. You are Paying a Mortgage We are going to reiterate this statement as often as we possibly can. If you are renting you have to realize that you are helping your landlord pay their mortgage. Would you rather be putting your money to something that will last and increase your net worth or would you rather help someone else increase their financial standing? This seems like a no brainer, but whether you are renting or buying, you are consuming housing and paying for that privilege.
It’s Time to Move On The “cost” of a home is determined by two major components: the price of the home and the current mortgage rate. Both appear to be on the rise which means a higher cost to you, the home buyer. But, let’s think about this a little differently for once. If the mortgage rate and the housing prices held steady, would you still wait? Look at the real reason you are buying a home in the first place and decide whether or not waiting is worth it. 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 your environment, maybe it’s time to buy right now.