If you’re looking for a new home, now is the perfect time to buy.
After years of record-low interest rates such as 3%, the government is finally making some noticeable increases. The rate for a 30-year fixed mortgage broke the 4% mark last year. With economic growth continuing to move forward, predictions believe we’ll see at least two to four more rate increases throughout 2018. Rates are anticipated to hit 5% by the end of the year. This means very simply, the longer you wait the more you will pay.
Increasing Real Estate Prices
Over the past few years’ real estate prices skyrocketed, there was a 5.5% increase just last year alone. Home prices are predicted to continue to climb year-to-year at a rate of 2.5%, which means prices will continue to rise just not at the rate they have the past few years making now a great time to buy. If not, every year they will be more expensive.
Less Tax, More Money
You can deduct the interest you pay on your mortgage from your taxable income; new homeowners tend to get the greatest tax benefit. The newer the mortgage, the higher the interest payment each month, which means the greater tax breaks. Real estate taxes are also deductible, providing great benefits to the homeowner as well. Homeowners often find that owning a home costs substantially less than renting a home.
Easy to Qualify, Easy to Borrow
Borrowing money has become less of a problem recently, so qualifying for a mortgage may be easier. Experts advise that you become pre-approved for a loan by a lending institution – meaning that a lender guarantees to make the loan contingent on an appraisal of the property. Some easy ways to qualify is to lower your debt and work on your credit score. The good news in seeking pre-approval is that lenders are now willing to let a potential buyer take on more debt than the previous formula.
There are many reasons that you should purchase a home now, but these are some of the most important ones. If you’re already looking to buy a home, do it now while the prices are low, the interest rates are low and you have a great chance of getting approved for a loan. The market can always go up and down, but the prediction for the years to come show now is definitely the time.