If you have been watching the market and waiting for the right time to buy your next home, that time may be here. Property values have consistently trended upward for almost a decade, so many people are uncertain about when to jump into the market. The reality is that buying a home today may actually be more affordable than it has been recently despite rising property values. This is because of low mortgage rates.
For a homebuyer, affordability can be gauged by their monthly mortgage payment. A higher sales price could result in the need to make a larger down payment in some cases, but there are a wide range of programs available with low down payment requirements to explore. Even through the sales price may be higher, the lower interest rates today may still establish comparable or lower monthly mortgage payments.
Should you buy a new home now or wait for a better opportunity to arrive? There is not much room for mortgage interest rates to decrease further. At the same time, housing prices in many markets may continue to rise. In fact, Zillow projects housing prices to rise by more than 10 percent throughout 2021. When housing prices rise and mortgage interest rates remain the same or rise, you can expect a higher monthly mortgage payment. There are many other factors to consider when deciding whether to buy a new home or to sit on the sidelines, but now is the time to seriously consider taking advantage of the excellent environment.
Contact one of our loan consultants to learn more.
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