The housing market in many areas of the country remains hot this summer season. Here are 3 great reasons to consider buying a home now instead of waiting.
- Home Prices Will Continue to Rise
According to Core Logic’s latest Home Price Index reports, home prices have appreciated nationwide by 5.9% over the last 12 months. It was also predicted in the same report that prices will continue to increase at a rate of 5.3% over the next year. The Home Price Expectation Survey polls a distinguished panel of over 100 economists, investment strategists, and housing market analysts. Their most recent report projects that for the next 5 years, home values should appreciate by more than 3.2% a year. Home values should continue to appreciate so waiting longer makes no sense.
- Projected Increase of Mortgage Interest Rates
According to Freddie Mac’s Primary Mortgage Market Survey, interest rates for a 30-year mortgage are currently around 3.5% and most experts predict that they will begin to rise over the next 12 months. Freddie Mac, The Mortgage Bankers Association & the National Association of Realtors are all projecting that rates would be up almost a full percentage point by this time next year. An increase in rates will impact your monthly mortgage payment and your housing expense will increase a year from now.
- Either Way You’re Paying a Mortgage
Households must have housing whether they own or rent. Homeowners pay debt service to pay their own principal while households that rent pay down the principal of a landlord plus a rate of return. 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. Consider looking at the reason why you are buying and decide whether it is worth waiting. More important than the season is your own personal timetable. The best time to buy is when you find the perfect house and you can afford it. As a bonus, you will have a tax deduction on the interest you pay each year.