Amidst everything happening in the country and around the world, house prices have held steady and even increased during the economic shutdown that followed the pandemic. Currently, interest rates are near all-time lows and could potentially go lower.
However, with housing inventory remaining tight with thousands of homes having been taken off the market during the shutdown, prices may go even higher, lowering affordability. Some people think they should wait to buy until home prices go back down; but it is nearly impossible to time pricing in the housing market in order to buy at the bottom of the market trend. With the economy slowly opening back up, it’s likely any delay in purchasing a home will result in paying a higher price.
Also, it’s easier to sell your current house, now more than ever. The homebuying process is always proven more difficult when you have a home to sell first. But if you’re looking to move, it may be easier to sell your current home now than at any time in recent memory, which in turn, will make it easier to buy.
The decision of so many sellers to take their properties off the market as the pandemic began or choosing not to list them at all, made inventory tight in many markets. That not only makes it possible you’ll get a higher price on the sale of your current home, but that you’ll also sell it quickly.
Buying now will give you an opportunity to lock-in some of lowest mortgage rates in history. According to Freddie Mac, the rate is 3.01% on a 30-year fixed-rate mortgage, and 2.54% on a 15-year mortgage. *
“With interest rates at the lowest level in decades, if you’re in the market for a home, now is a good time to buy,” said Barbara Friedberg, MBA at Robo-Advisor Pros in a Forbes Magazine interview.**
It’s possible mortgage rates can fall even lower, but there’s no way to know that will happen. The only thing we know for certain is that interest rates are better now than they’ve ever been, making buying now more compelling than ever. The fact that the housing market successfully weathered the pandemic and the shutdown that followed are a strong indication of positive price action to come.
Overall, If you find the right house and it fits neatly within your budget, it’s best to buy now, rather than risking the cost of waiting. When it comes to making major financial decisions, we often hesitate in speculation about what the future holds, but we can never know for sure how things will play out - it’s better to work with what you know now than to wait on an unknown future!
* Source: http://www.freddiemac.com/pmms/ Rates current as of July 24, 2020. Interest rates and products are subject to change without notice and may or may not be available at the time of commitment or lock-in.
**Original source: https://www.forbes.com/sites/jrose/2020/07/07/mortgage-rates-reach-recor...