- Prices May Continue to Rise
Home prices have appreciated by 6.7% over the last 12 months and may continue to increase at a rate of 5.0% over the next year. The bottom in home prices has come and gone and home values will continue to appreciate for years to come. It does not make much sense to wait any longer.
- Mortgage Interest Rates are Projected to Increase
In recent times interest rates for a 30-year mortgage have hovered around 4%. Most experts predict that rates will rise over the next 12 months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac and the National Association of Realtors are all projecting that rates will increase by this time next year.
- Either Way – You are Paying a Mortgage
There are some renters who have not yet purchased a home because they are fearful of taking on the obligation of a mortgage payment. Everyone should understand that unless you are living with family rent-free, you are paying a mortgage – whether it is yours or your landlords.
As an owner, your mortgage payment allows you to have equity in your home that you can tap into later in life. As a renter, your landlord is the person that you are building that equity for.
4. It is Time to Move on with Your Life
The cost of a home is determined by two major pieces – the price and the current mortgage rate – and it appears that both are on the rise. Contemplate the actual reason you are buying and decide if it is worth waiting. Whether you want to have a great place for your children to grow up, you are tired of paying your landlords mortgage, or you just want to have control over renovations, maybe now is the time to buy.