We keep saying it, but this really is a great time to buy a home.
Whether it's your first home, or you're upgrading, or even if you're planning to downsize, there are some quite compelling reasons why you might not want to put off your purchase any longer:
Ultra-Low Mortgage Rates - As we wrote in last Friday's blog, where mortgage rates are at right now defies all the predictions of experts, going into 2016. Last week saw the lowest rates of the year and, the way things have been going, it wouldn't surprise us at all if we hit another record low some time very, very soon. This is, of course, great news with the spring home buying season in full swing. The question that no-one can answer, of course, is how much longer the stars can keep aligned for these incredible rates. Yes, as we just observed, they could decline further, but with a 30 year home loan currently attracting an interest rate of around 3.58%, we're inclined to ask how much more attractive does it have to get before you act to lock in a low rate for the life of the mortgage?
The Election - Although the new presidency won't effectively begin until the New Year, the election ought to be figuring in your assessment of whether or not to buy now. Putting off the decision until the election is over carries a number of significant risks. Inevitably, financial markets will respond, either positively or negatively, to election results and this means that procrastinating on house purchase until 2017 is a high risk strategy. Although it will take a while for the new administration to have an impact in terms of legislation, the financial world will respond in a far more nimble fashion, so don't gamble and recognize the current favorable situation for what it is - arguably one of the best opportunities ever to own or change homes.
The Economy - Although we've seen some disappointing economic data of late, plus some unexpectedly cautious messages coming out of the Federal Reserve, it should be remembered that any lack of confidence in the economy helps to keep mortgage rates at the very low levels we've been seeing. The volatile international scene also contributes to a more risk averse environment, but if you're in a good position from a financial standpoint, it's best to look more closer to home and carefully evaluate your own situation. If you're in good shape to buy a home this really is a great moment to do so, irrespective of wider considerations. And don't forget that a more successful economy leads to higher home prices and mortgage rates too.
Rentals Keep Getting More Expensive - While little is certain in this world, one statistic that seems more or less guaranteed is that rentals will become more and more expensive. The demand for rental property is still growing and not everyone can qualify for a home loan, so landlords generally find it quite easy to regularly raise their prices. All the expert predictions and history of the past few years suggest that further significant increases are inevitable. Consider that a fixed rate mortgage means you'll never have to face the stress of paying more for rent each month - if you can possibly qualify for a home loan, this should be one of your key considerations.
Home Prices Are Rising - Rising home prices are, quite simply, the inevitable result of high demand and, as we've seen in the Albuquerque market for some time now, a very limited inventory of available homes for sale. Although price increases are still at sensible levels, the fact is that the longer you wait the more expensive the home you want is likely to cost you.
We hope you find the above arguments for acting now to be compelling. Right now we have an almost perfect combination of circumstances to make home purchase a no-brainer decision if you can possibly afford it. Call us today and don't waste another moment.
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