Whether you are purchasing a home for the first time as a "first time home-buyer" or wanting to upgrade to a larger home of your dreams, now may be the perfect time to do do.
Look at 3 significant reasons to consider purchasing a home today:
Many people look only at price when speaking about home affordability. As home prices have gone up throughout the past year, they assume homes are less affordable. However, affordability is determined by 3 components:
- MORTGAGE INTEREST RATES
Home prices are up, but so are employment wages - and mortgage interest rates have dramatically decreased. As a result, the National Association of Realtors/ (NAR) Affordability Index report signaled that homes are MORE affordable throughout he country today than they were just one year ago.
Quoting from the report, "All four regions saw an increase in affordability from a year ago. The South had the biggest gain in affordability of 6.9%, followed by the west with a gain of 6.0%. The Midwest had an increase of 5.8%, followed by the Northeast with the smallest gain of 1.8%."
2. Mortgage Interest Rates
Mortgages interest rates have decreased almost one full point after heading toward 5 percent last fall and early winter. Currently, rates are below 4 percent.
Additionally, Fannie Mae recently predicted the average rate for a thirty-year fixed mortgage will be 3.7 percent in the second half of 2019. Compare this to a 4.4 percent average rate in the first quarter and four percent in the second quarter.
As interest rates have remained close to historic lows, Fannie Mae and other pundits have increased their predictions for housing appreciation for the remainder of this year. If home prices gaines are about to re-accelerate, buying now instead of later makes good financial sense.
3. Increased Family Wealth
Home-ownership has always been viewed as a sensational way to build long-term family wealth. A new report by ATTOM Data Solutions reports, "US homeowners who sold in the second quarter of 2019 realized an average home price gain since purchase of $67,500, up from an average gain of $57,706 in Quarter 1 2019 and up from an average gain of $60,100 in Quarter 2 2018. The average home seller gain of $67,500 in Quarter 2 2019 represented an average 33.9 percent return as a percentage of original purchase price."
The longer you delay buying a home, the longer you are putting off the power of home equity on your side.
With affordability going up, mortgage interest rates going down and property values about to re-accelerate, it may be the perfect time to consider if buying a home now makes sense for you.
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