You can certainly wait to buy a home. There are a few compelling reasons to do it now. The ones we think are the most important are the following: 1) Mortgage rates are going to rise; 2) Prices will rise; and 3) You pay a mortgage either way.
1. Prices Will Continue to Rise
CoreLogic’s latest Home Price Index* reports that home prices have appreciated by 6.3% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 5.4% over the next year. The Home Price Expectation Survey polls a distinguished panel of over 100 economists, investment strategists, and housing market analysts. Their most recent report projects home values to appreciate by more than 3.2% a year for the next 5 years
2. Mortgage Interest Rates Are Projected to Increase
Freddie Mac’s Primary Mortgage Market Survey* shows that interest rates for a 30-year mortgage have remained around 4%. Most experts predict that they will begin to rise over the next 12 months. The Mortgage Bankers Association, Freddie Mac & the National Association of Realtors are in unison projecting that rates will be up almost three-quarters of a percentage point by this time next year. An increase in rates will impact YOUR monthly mortgage payment. A year from now, your housing expense will increase if a mortgage is necessary to buy your next home.
3. Either Way You are Paying a Mortgage
A recent paper from the Joint Center for Housing Studies at Harvard University* explains it well: “Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return. That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.”
There are certainly a lot of great reasons to wait to buy a home. However, homes will continue to appreciate, rates will increase and you are paying for housing anyway. These are three compelling reasons to consider buying now.
He lets you know when an issue is important to take care of and doesn't bore ...
Char Ruppel is an outstanding mortgage broker, I would highly recommend him. We contacted Char about 6 months ago. Prior to placing our first bid he helped us prepare for the loan process, then when we were ready to place our bid, he was extremely responsive while we decided on placing an offer and quickly generated our pre-approval letter. Char actually called the listing agent to let her know that we were qualified buyers (since we were in competition I think his call was helpful). He worked easily with our agent and had fantastic recommendations for other professionals needed during this process. For example my husband and I had to jump through quite a few hoops regarding flood insurance. We dealt with many insurance agents and quickly realized that Char's recommendation was superior to the rest (This constantly happened through the process). Overall, Char is straightforward and easy to deal with. He lets you know when an issue is important to take care of and doesn't bore you with the details if it is not necessary. He was helpful and responsive from the beginning to the end of the process. Char obviously excels at his job but he brings more than that to the process of buying a home. He is a genuine person who helps and encourages his clients. What more could you ask for? I would recommend him to anyone and everyone.