Housing market analysts are saying now is a good time to buy or sell a home. Here’s why:
1. Mortgage rates still near historical lows.Remember, interest rates can be extremely volatile, so check with us for up-to-the-minute information.
2. Mortgage rates expected to rise by the end of year. Economists expect the Federal Reserve, the nation’s central bank, to raise its Funds Rate this year. This may push mortgage rates up. Every 1% gain in mortgage rates reduces affordability by about 10%, so instead of a $200,000 house, you can only afford an $180,000 one. This hurts sellers too, as buyers drop out. No one knows for sure that these things will occur, but if you’re on the fence about buying or selling, you may want to act this year.
3. Prices recovering, but at a slower rate. Home prices are rising, which is good because you don’t want your home to be worth less in the future. Prices are going up more slowly than they did earlier in the recovery, so it doesn’t pay for sellers to hold out for higher prices, especially if higher mortgage rates send buyers to the sidelines.
4. More choice. As home prices recover, more sellers put homes on the market. With the threat of higher mortgage rates, additional sellers are listing, so buyers have more homes to consider.
5. Improving economy. Economists point out that jobs are being created, wages are growing, consumer confidence is rising, and more households are forming, all good signs for home sales.
Contact your HomeBridge Mortgage Loan Originator to get started today!