Four reasons you should consider buying a home now:
1. Interest rates are not going down anytime soon.
Interest rates are currently hovering slightly below 4% for a 30-year fixed-rate mortgage. However, Zillow is expecting interest rates to rise to 5% by the end of the year, which is a huge difference from the nearly 4% interest rate we are currently experiencing.
2. There are cheaper mortgage insurance premiums in effect.
Due to there being cheaper mortgage insurance premiums, in some cases it may be a better idea to buy a home sooner due to all of the other benefits of buying now, instead of waiting later when housing may be more expensive and interest rates may be higher. Yes, saving for a larger down payment may be a great idea, but when you combine all of the factors in this article, you may actually find yourself losing money over the long-term.
3. Home values are expected to increase.
Home prices are said to be increasing and they are only expected to keep increasing in the future. Inventory is down and is expected to shrink further, homes are being sold above asking price, and interest rates are climbing. Also, according to Freddie Mac, home prices are expected to see a price gain of 4.5% in 2015 alone, and they’re expected to keep increasing in the following years.
4. Rent prices are increasing.
Rent prices are increasing month after month in the United States. In many areas in the U.S., you may even find yourself paying a higher amount towards rent each month than you would if you had a monthly mortgage payment.