Here are just a few of the reasons why waiting to buy is likely not in your best interest:
1. Mortgage Interest Rates Are Projected to Increase
Freddie Mac’s mortgage survey indicates that interest rates for a 30-year mortgage have hovered around the 4.2% mark over the last two months. However, The National Association of REALTORS®, The Mortgage Bankers Association, Fannie Mae & Freddie Mac all seem to agree that mortgage rates will increase by at least a half of a percentage point, by this time next year. As previously posted, an increase in mortgage rates will undoubtedly impact YOUR monthly mortgage payment.
2. Home Prices Are Predicted to Continue Rising
CoreLogic, the leading property analytical solutions provider, published in its December 2016 Home Price Index reports that home prices have risen by approximately 6.9% over the last 12 months. This same report further predicts that home prices will continue to rise at a rate of 4.8% over the next year. Without a doubt, we have long surpassed the “bottom of the market”. Home values seem as though they will continue to appreciate for years to come. Therefore, increasing home prices, coupled with increasing mortgage rates, make waiting to buy a bad financial strategy!!
As noted in the graphic below, that $250,000 house you see today will cost you almost $55,000 more(over the 30 year term), if you wait to buy it, this time next year!!
3. Either Way, You are Paying a Mortgage
Unfortunately, it seems that there are many renters who have not yet purchased a home, because they are uncomfortable taking on the obligation of a mortgage. However, unless you are living with your parents rent free, you are in essence still paying a mortgage – either Yours or your Landlord’s.
As an owner, your mortgage payment is a form of ‘savings’ which enables you to build equity that you can tap into later in life. As a renter, you simply guarantee your Landlord is the person that benefits from that equity.
4. It’s Time to Move on with Your Life
As demonstrated above, two of the major components that contribute to the “cost” of a home are of course the home’s price and the current mortgage interest rate….and both are on the rise. With that being said, it is important for you to look at the underlying reason you have been considering a home purchase and decide if waiting makes any sense. Whether you are looking to build long-term wealth, or you would prefer to be a little further from the city centre, or you simply want a place for the children to grow and flourish…..maybe now is the time to buy!!
The Takeaway
If you have been considering a home purchase, buying now vs. waiting will save you thousands & thousands of dollars. It’s you move!!
As always, call or text me today at 727.755.3434 and I would be glad to help.
