#MortgageMonday: Is now a good time to buy a House?
With home prices increasing and mortgage rates on the rise, there are a lot of reasons to question if now is a good time to buy a home. It is certainly more expensive each month and understanding affordability is more important than earlier this year. Here are a couple reasons why buying now can make sense:
STRONG APPRECIATION EXPECTED: Home values and appreciation are continuing to rise and expected to increase 6-10% over the course of the next year. With inflation on the rise and uncertainty in the financial markets, real estate is still a great investment. Historically, recessions do not signal a decrease in home values.
REFINANCE TO A LOWER RATE: Homebuyers are not married to their interest rate. While the Federal Reserve is expected to hike the fed funds rate more in 2022, now presents an opportunity to buy before rates go up further. Along with that, homeowners are not set to that rate for the next 30 years. Rates will go down and present a great opportunity to lower your rate and payment with little to no cost.
LESS COMPETITION AND MORE INVENTORY: There are recent signs that market competition is slightly slowing down. Some buyers are waiting on the sidelines after an exhausting one to two year stint of losing multiple offers. With the potential for less competition and rising home inventory, it presents an opportunity for you.
LEVERAGE YOUR EXISTING EQUITY: If currently a homeowner, the increased equity in the current home gives you a great option to find a home that better fits their needs – opportunities to buy that bigger house, move to a better school district, or find that dream home.
Ultimately and in any market, it is a personal decision. Knowing your financial situation and working with a local lender and great real estate agent who can help understand what each unique scenario looks like is very important in a rapidly changing environment like we have had this year.
Author: Vanessa Keyes, Vice President of Mortgage Lending at Guaranteed Rate [email protected] rate.com/VanessaKeyes (773) 354-1899