Here are four great reasons to consider buying a home today, instead of waiting.
1. Home Prices Are Expected to Rise
CoreLogic’s latest Home Price Index shows that home prices have risen by 7.1% over the last 12 months on a national basis. CoreLogic predicts that prices will continue to increase at a rate of 4.9% over the next year. So it is time to buy if prices are a concern. Inventory of homes for sale remain low and will add to the pricing pressure. Remember it is important to look at your local market in assessing rising prices.
2. Mortgage Interest Rates Are On the Rise and Are Expected to Continue to Rise
Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have remained around 4%. Many of the experts are predicting rates will continue on an upward trend over the next year. Yesterday the Fed implemented its third rate hike of 1/4 point on Fed Funds. This increase will not have an immediate impact on mortgage rates but as rates begin to increase on Treasury Bills it will ripple into the mortgage market. The major agencies and association in the mortgage and real estate market from The Mortgage Bankers Association, Fannie Mae, Freddie Mac & the National Association of Realtors all are projecting that rates will continue on the upward trend.
Any increase in rates will impact your monthly mortgage payment as well as the amount you may borrow. If as expected home prices continue to rise the buyer will be impacted from two fronts and may be priced out of the market. .
3. Remember You Are Paying A Mortgage–Yours or the Landlords
Remember as a tenant you do not receive tax benefits on your rent payments to the Landlord, but the Landlord does when they make their mortgage payment. So try to remember you are paying a mortgage and renters why not join the band of home ownership and get the financial and tax benefits of home-ownership?
Now whose equity do you want to build–yours or the Landlords?
4. Talk to a Realtor and Mortgage Lender To See If You Are Able to Buy
The Realtor can show you what you can afford to buy. Remember this will be your first home and you may not be able to get all the bells and whistles you were use but you are building a nest egg for the future.
The mortgage lender is the one who can guild you on the types of financing available and more important how much you can borrow to secure your home.
Do not hesitate contact a realtor and I am here to assist you and can give you names of qualified lenders. Contact me today.