As we roll out the last few days of summer, families are getting back to the routine of school, projects and after school activities. Fall is also considered to be the “off-season” to buy a home. Spring and summer rule this trend, but there are several reasons why, if you are in the market to buy a home in the near future, why moving on your home now as the weather cools is a really good idea.
Increasing Mortgage Rates
While the reports are conflicting depending on your source, interest rates for 30-year fixed-rate mortgages are predicted to begin to rise as 2014 comes to a close. It is assumed that an increase of a full-percentage could be expected by the end of 2015.
Your monthly mortgage payment is directly impacted by the mortgage rates available. Waiting to begin the process only increases your chances of a higher interest rate, and a higher mortgage payment.
Rising Home Prices
With the continued stabilization of the housing market comes the potential for higher home prices. At present, we are looking at a seller’s market, where chances of getting a good dollar for a home for sale are much more possible than previous years. The Home Price Expectation Survey, which polls some of the most distinguished economists and strategists in the industry, projects an increase in home values over the next five years between 11.2% and 27.8%.
Simply put, that $100,000 property could be going for $125,000 in the next few years. Do you want to add $25,000 to your mortgage payments just for waiting?
What Better Time than the Present?
Considering the two criteria that make up the cost of a home, the mortgage rate and the price of the home, are both looking to increase in the near future for an undetermined length of time, the fact is, the longer you wait to begin looking for a home the more costly it is going to be for you.
You want the best home your budget can afford, for you and your family. At the very least, now is the time to speak to a local real estate agent and mortgage banker, to find out the costs of homes in your area and the mortgage rates available to you. Get the information you need to put your strategy to buy a new home in motion today.