Are you wondering if now is the right time to buy a home?
Maybe you’re renting and want to make the jump to homeownership but you’re just not sure or perhaps you’re a homeowner whose home no longer fits your needs and you’re ready to make a change.
What factors should you consider if you should buy this year or wait? Ask yourself if you think home values will be higher a year from now? What about mortgages, will rates be higher a year from now if I decide to wait?
Looking at market data, most recent projections from industry forecasters expect home prices will continue to increase and they are estimated to increase by more than 7%. That means prospective buyers will have to put more money down as well as borrow more by just waiting a year to make their move.
So where will mortgage rates be a year from now?
Currently rates are around 3% however experts expect them to rise as the economy continues to recover. An increase in mortgage rates means an increase in a buyer’s costs.
Here are the projections for the first quarter of 2022 by these major industry forecasters:
Freddie Mac – 3.5%
Fannie Mae – 3.5%
National Association of Realtors – 3.5%
Mortgage Bankers Association – 3.9%
What happens if home values and mortgage rates increase?
It means a buyer’s mortgage payments will be higher monthly than if they were to purchase at today’s current rates. Not to mention with the increase predicted, if a buyer were to purchase now they would experience home appreciation as rates increase.
Based on the data, the financial benefits make it clear that purchasing now is much more advantageous than waiting a year from now.
Robb Realty Group can sit down with you and assist you with your home buying needs in this competitive market. We have the tools and resources to help you put together an offer that the seller will want to accept.