Are you on the fence about buying right now? Mortgage rates are still low, however inventory is low which leaves buyers scrounging for a place to move to and bidding wars. However, buyers are still going under contract daily. Some people think they may “wait it out” but it’s important to ask these two questions:
- Will mortgage rates be higher a year from now?
- Will home values be higher a year from now?
Mortgage rates are around 3% currently. Experts have forecasted mortgage rates to go higher as the economy recovers from COVID-19. Increase in mortgage rates also means increase in the cost to purchase a home. Mortgage rates forecasted in 1 year range from 3.5-3.9% within the next year which does make a difference on your monthly payment and interest.
As for home values, experts have forecasted a 7.7% increase in home values which means spending more money out of pocket to purchase the home and more you are paying for over a period of time as far as what you are borrowing for your mortgage.
When asking if they should buy a home, buyers think about the benefits that aren’t always financial when it comes to owning a home. When asking when to buy, the financial benefits show it is much better to buy now and take advantage of the rates and pricing homes are at, rather than wait another year. Are you ready to buy and need a real estate professional to help? We love helping our clients find the home of their dreams while educating them on the real estate market! Give us a call today! 832-264-8934