As the old saying goes, “timing is everything”! And now is the right time to get back into the market and purchase a new home. Here are 10 reasons why current market conditions are favorable, and will not continue for very long.
1. Mortgage Rates Will Rise. Though at historic lows, there are factors that play into current rates, such as support from the Federal Reserve and moderate economic growth. These will not hang around for long.
2. Federal Reserve Support Will End. Speaking of support, the question is open as to how long the Fed will manage rates.
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3. Home Prices Are Increasing. With sellers markets forming in many areas around the country, homebuyers should act now before prices rise even more.
4. FHA Increasing Costs. In order to boost the FHA reserve fund that was wiped out in the housing crash, lawmakers have increased mortgage insurance premiums and lenders are raising credit score requirements.
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5. Home Sales Are Increasing. Home sale increases are creating a demand for homes, making it harder to find the perfect home. If you wait too long, there is a good chance you will not find many suitable homes to choose from.
6. Rising Rents. With rents rising at around 3% growth each year, taking advantage of affordable homes right now can benefit the buyer in the long run.
7. Mortgage Interest Deduction. Certain lawmakers have proposed reducing the deduction or doing away with it altogether. However, the deduction is still in play and hasn't been reduced yet.
8. Increased Affordability. The National Housing Affordability Index predicts the third-highest reading on record for 2013. In simpler terms, this means that 2013 is a great time to buy before home prices and mortgage rates rise.
9. Delinquencies Have Begun to Wane. The continued decline of mortgage delinquencies will help to firm home prices and increase the confidence of those looking to purchase.
10. Desirability is Back. As opposed to a few years ago, people are less worried about losing their jobs, prices have stopped falling in many areas, home sales have picked up and banks ore seeing fewer foreclosures.
If you have any questions regarding a mortgage, reverse mortgage, refinancing, or the loan process, please contact me.
Pam Wright, Mortgage Consultant
404-445-1033 | Pam.Wright@OnQFinancial.com
