Our August market data shows that if you’ve been playing around with the idea of buying a home, it’s time to get serious.
As we reported last month, mortgage interest rates are continuing to head up. Freddie Mac is projecting that interest rates will be more than a percentage point higher at this time next year.
Today’s the day to lock in a lower interest rate. We recommend Melissa Fisher of Finance of America or Maureen Lein of Guaranteed Rate. If you have any questions about rising mortgage rates, call us any time. We’re happy to talk through any questions!
Home prices are going up. Dr. Frank Nothaft, Senior Vice President and Chief Economist at CoreLogic explains that “if you’re thinking of buying a home and have the financial means to do so, this could be a good time to take a look at the neighborhood you are interested in. We expect home prices in our nation to be up about 5% in the next 12 months and mortgage rates are also likely to increase over the next year.” Home prices are showing strong gains in every part of the country, with a 7.2% rise in the midwest.
Many people are still under the impression that renting is cheaper than owning a home. However, median asking rents are on the rise and have been in recent years. In the past, the percentage of monthly income spent on housing costs was lower for renters than homeowners. That has changed. Because of high monthly rents, and expectations that rents are continuing to rise, now is a good time for renters to become first time homeowners!
Don’t let down payment expectations stop you from beginning a home search. The expectation that you have to put 20% down is a myth! In fact, 64.2% of home buyers between the ages of 18 and 34 were approved for putting down less than 20%. There are many options out there that can get you out of the rental market and into home ownership even with less cash on-hand.
Whether you’re currently renting or you already own a home, with lower down payment expectations, and rising rents, home prices, and mortgage rates, if you’ve been on the fence about starting the new home search, jump off the fence and call us today! It’s a great time to buy!