10/28/2024
This is for all potential homebuyers. There is never a better time to buy a house than now, and here are some reasons why:
1. Average home values have been increasing over the past 6 years from approximately $173,000 in 2018 to $255,000 in 2024.
2. Interest rates have been fluctuating since they started being recorded in 1971. The highest rate (18.6%) was recorded in 1981, and the lowest rate (2.5%) was recorded in 2021 (due to the pandemic). As rates decrease, the home prices will surely rise due to more buyers in the market. The average mortgage rate over that past 50+ years has been 7.75%. There are many factors that contribute to mortgage rate fluctuations. These include, but are not limited to, the national economy figures (GDP, inflation, budget surpluses and deficiencies, etc.), and global activities (wars, pandemics, inflation, etc.). There is no sure way to predict what interest rates will do, so the rate shouldn't be your deciding factor on whether to buy now or wait.
3. You can always refinance should rates drop. Rarely, on a refinance do you need to bring any funds to closing. Most of the time, there is enough equity in the house to roll the closing costs (usually less than what they were when you purchased the home) into the new mortgage. Rolling the closing costs into the new mortgage has very little impact on the monthly payment. Also, as home values rise, and interest rates come down, the ability refinance increases.
4. You may miss out on your dream home. Continuing to actively be in the market to purchase will give you a better chance of finding your dream home. Mortgage pre-approvals last for approximately 120 days, and usually you just need to update your employment, income and asset amounts, and have your credit checked to extend it another 120 days.
5. Chance to build long term wealth. As home values continue to increase, now may be the best time to buy. For example, if you bought a house today for $255,000 (average sales price), and values increase at even an moderate pace of 3%/year, the value of that home will be worth over $340,000 in 10 years. However, if you wait just 1 year to buy that same house, it may cost you over $262,500.
Please, feel free to reach-out to me should you have questions. We have many programs for all types of residential homebuyers.
Matt Secor - Mortgage Originator #626677
Premium Mortgage Corporation
Email: [email protected]
Phone: 585-880-0848 (personal cell phone)
