Everyone who is debating to purchase of a home will often pay close attention to the market and wonder when is the best time to buy. As we are far into 2017, the real estate market has proven to be of good health and all signs point to now being a prime time to make your purchase. Here are 4 of the top reasons why now is a great time to make your move.
Mortgage rates on the rise
Mortgage rates have been staying around the 4% mark for the average 30 year mortgage lately. However, many authorities such as NAR, Fannie Mae, Freddie Mac and The Mortgage Bankers Association are all predicting that rates will increase by at least a half of a percentage point by this time next year. The bottom line is that the higher the rate, the more your monthly payment is going to be which can affect what you can afford for your new home.
Home prices are rising
In a recent report by CoreLogic, home prices have risen by nearly 7% over the last 12 months. This same report estimates the trend to continue by nearly 5% over the next year. Overall, we see appreciation happening in nearly all major markets so waiting any longer doesn’t make sense.
You are paying anyway
Some people are hesitant to make a purchase as they fear the responsibility of a mortgage. However, unless you live with someone you know for free, everyone is paying a mortgage whether it is their own or their landlord’s. When you own a property then your monthly payments are more or less a forced savings as you build equity in your home. You can utilize this equity later on or enjoy mortgage free living when your loan is fully paid.
The time has come in your life
The cost of a home will be affected by two major things – the price of the home and what the mortgage rate is. Both are on the rise so entering into the game sooner will be better. Additionally, mortgages come in terms of years so the sooner you begin paying down your mortgage, the sooner you will pay it off and live debt free.