Trying To Buy a Home? Hang in There.
The market is still in favor of sellers. And if you're considering purchasing a home, you're probably dealing with some particular difficulties, such as a tough time choosing a home and unstable mortgage rates. But, bear in mind that there are some advantages to being a buyer in the current market, giving you an excellent incentive to continue your search. Let's look at a couple of them.
Advantages in the Long Run Outweigh Obstacles in the Short Run
Your net worth increases when you own a property, and since accumulating money takes time, it makes sense to get started as soon as you can. You will lose out on those monthly housing payments going toward your home equity if you delay to buy and continue renting. According to Freddie Mac:
“Homeownership not only builds a sense of pride and accomplishment, but it’s also an important step toward achieving long-term financial stability.”
Long-term is crucial since homeownership offers financial advantages including home value growth and equity that increase over time. The short-term difficulties that the sellers' market of today poses are worth those advantages.
Mortgage Interest Rates Vary Often
Over the past few months, mortgage rates have been circling around 6.5 percent. Yet, as Freddie Mac's Chief Economist Sam Khater noted, they have just started to decline somewhat.
When you buy, having more money to spend thanks to lower mortgage rates might make it more economical to become a homeowner. Realtor.com's Hannah Jones, an economist data analyst, explains:
“Economic uncertainty continues to bring mortgage rates down. Over the last several weeks, declining rates have brought borrowers back to the market . . .”
Lower mortgage rates improve your purchasing power when you buy, and that can help make homeownership more affordable. Hannah Jones, Economic Data Analyst at realtor.com, explains:
“As we move into the spring buying season, mortgage rates have ticked lower, a welcomed sign of progress towards affordability.”
If you couldn't afford to buy a home when mortgage rates were at their highest, the recent decline in rates is good news.
The cost of homes will rise.
The House Price Expectation Survey, which interviews more than 100 real estate professionals, predicts that after a minor drop this year, home values would increase significantly over the following few years:
For you as a buyer, rising home prices in the upcoming years entails two things:
To sum up
Keep trying if you've been trying to buy a house. The long-term advantages of homeownership outweigh many of the short-term obstacles, mortgage rates have just started to trend down, and home prices are expected to rise in the upcoming years.