Tuesday, September 17, 2019 / by Heriberto Rodriguez
Below are four great reasons to consider buying a home today instead of waiting.
1. Prices Will Continue to Rise
CoreLogic’s Home Price Index reports that home prices have appreciated by 3.4% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 5.2% over the next year.
Home values will continue to appreciate. Waiting may not make sense any longer.
2. Mortgage Interest Rates Are Projected to Increase
Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year fixed rate mortgage are around 3.6%. Most experts predict rates will rise over the next 12 months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac, and the National Association of Realtors are in unison, projecting a rate increase by this time next year.
An increase in rates will impact your monthly mortgage payment. A year from now, your housing expenses will likely increase if a mortgage is necessary to buy your next home.
3. Either Way, Your 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 that of your landlord.
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 will be on the rise.
But what if they weren’t? Would you wait?
Examine the actual reason you're buying and decide if it is worth waiting. Whether you want to have a fantastic place for your children to grow up, greater safety for your family, or you just want to have control over home 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.