3/15/2023 0 Comments
Timing of Buying for Now
With rents increasing it makes sense to buy now even with current rates. You can always refinance when/if the rates go down. Some lenders have programs to refi without alot of costs in the first year of the loan. It's worth it to stop paying rising rents and buy now and start building equity in your home now.
While it might be tempting to postpone buying until a better deal shows up, there's no guarantee that rates will fall or that homes will be more affordable next year. Many real estate experts don't think things will change much.
Lawrence Yun, Chief Economist with the National Association of Realtors (NAR) predicts that a return to the 3% mortgage rates of 2021 won't happen again for a long time. These rates appeared during an unexpected global pandemic, at a time when a variety of factors created an unexpectedly hot real estate market.
Regarding falling home prices, any current price corrections could disappear as soon as the inventory of homes for sale takes another dive. To make the situation even more frustrating, if mortgage rates fall, this could fuel more demand for fewer homes. Both of these would contribute to more expensive home purchases because of the supply versus demand scenarios created.
In conclusion: potential buyers who plan to stay in their next home for more than five years may want to consider being less concerned about timing the market. Instead, they can concentrate on the other benefits of home ownership: *the equity they'll begin to build, *potential tax savings, *and taking ownership of their living spaces, making them what they hope and imagine!
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