Housing prices are on the rise and are expected to continue rising so you should wait to sell your home? Wrong! In most cases, when you sell your home, you are going to be buying a new home. Yes, the price of your home will be higher in a couple years and the price of the new home will also be higher but what many sellers aren’t thinking about is the interest rate. Most forecasters say that the interest rate has already bottomed out and will be on the rise. What does this have to do with selling your home now or down the road when it may be worth more? The loan on your new home will cost you more because of the higher interest rates. Currently mortgage interest rates are 3-4% but in a couple years they are forecast to be 5-6% and on a 30 year mortgage for a $300,000 home, that adds up to a lot of extra costs in mortgage payments, thus making the home more expensive. Right now it is a seller’s market making it a great time to sell a home, you can find a home to buy and still get in on super low interest rates. Don’t wait – sell your home soon!
If you have been thinking about buying a home but have been putting it off, you really should get ready and buy sooner rather than later. Many buyers have just been waiting as prices continued to sink as well as interest rates but things are all starting to change and if you don’t get out and buy soon, you may end up paying a lot more for many reasons! I have made a list of 5 of the biggest reasons to get out and buy now.
Now is the time to get into that new home while the prices and mortgages are still low!
According to the 2012 Realtors Conference and Expo, the upward housing trend and market recovery should continue through at least 2014. Mortgage rates are forecast to rise to around 4% in 2013 and around 4.6% in 2014. With the rising housing demand and decline in housing inventory prices are also expected to continue to rise an average of about 5.1% in 2013. Home sales are also expected to increase about 8.7% in 2013.
Foreclosures and short sales will decline in their market share – in 2012 they are about 25% of the market and are forecast to be about 8% in 2014. Distressed properties are starting to be more like an after Christmas sale – the best stuff is all gone but there is still something to choose from.
People who purchased homes at low prices the last few years will see their equity grow in the next 4 years but renters will not only miss out on the equity gains, they will face rent rising at a fairly fast rate.
According to Freddie Mac, mortgage rates continue to decline and set new record lows! Reasons for the new historic lows are a weakening economy and the Federal Reserve’s continued purchase of mortgage securities.
The 30-year fixed rate mortgage averaged 3.36% for the week ending October 4, falling below the all-time low of 3.4% set last week. Last year at this time, the 30-year fixed rate mortgage averaged 3.94%. The 15-year fixed rate mortgage, a popular refinancing choice, averaged 2.69%, falling from 2.73% last week and setting a new record low. A year ago, the average rate for a 15-year fixed rate mortgage was 3.26%.