Here are four reasons why Spring is a great time to buy a home.
According to CoreLogic’s latest Home Price Index report, home prices have appreciated by 6.6% over the last 12 months and prices will continue to rise over the next year (approximately 4.3%). If you are waiting for the bottom of the market with regards to home values, waiting no longer makes sense; The bottom has come and gone.
Increasing Interest Rates
Freddie Mac’s Primary Mortgage Market Survey indicated that interest rates for a 30-year mortgage averaged around 4.25% in 2017. The Mortgage Bankers Association, Fannie Mae, Freddie Mac and the National Association of Realtors all agree, rates will increase by nearly a full percentage point by this time next year. This increase in rates WILL impact your mortgage payment and a year from now your housing expense will increase.
Pay Your Mortgage or Theirs
There are some renters who are uncomfortable with having the obligation of a mortgage so they don’t entertain the thought of purchasing a home. Unless you are living with your parents rent-free, you ARE paying a mortgage – either yours or your landlord’s. The benefit of being a homeowner is that a mortgage payment is a type of “forced savings” that allows you to have and grow equity in your home. As a renter, you guarantee that your landlord is the one who has the equity. Put your housing cost to work for you!
To determine the cost of a home we need to look at two components. First is the price of the home. Second is the mortgage rate. Both are currently on the rise. Waiting any longer may not be the best choice.
What is the real reason that you are buying a home? Is it to have a place for your children to grow up? To make your family safer? Or would you just like to have control over renovations and upgrades? Regardless of the reason, now is the time to buy.
If purchasing a home is the right thing to do for you and your family, doing so sooner rather than later will lead to substantial savings.
Happy House Hunting!