05 Jul Why You Should Buy A Home Now
Why Is Now The Time To Buy A Home?
There will always be pros and cons to buying a home. Why wait? Below are just a few of the solid reasons why you should buy a home now.
Interest Rates Are On The Rise
As of right now, interest rates for a 30-year fixed mortgage are in the mid 4’s. A 15-year fixed mortgage is in the high 3’s. Minnesota is currently in line with the national average. Most sources say we are trending to hit 5% by the end of the year. Locking on a lower interest rate now will save you money on your monthly mortgage payments throughout your loan. Helpful websites like Nerdwallet post the daily interest rates for your state.
Mortgage Loan Types
Freddie Mac and Fannie Mae offer mortgages with a 3% down payment! Freddie Mac and Fannie Mae are The Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). Both are mortgage companies and are Government Sponsored Enterprises (GSEs). This means that they are backed by the government but they are not a part of the government. There are certain requirements to qualify for a 3% loan such as credit score, income, assets and job status. First-time homebuyer programs are also available! Your local programs can assist with down payments and closing costs.
Home Prices Are Low But Rising
Prices are reasonable right now, but they will continue to rise. Home prices have appreciated by 6.6% between December 2016 and December 2017 according to CoreLogic’s report. Once you buy a home, the appreciation will start to work in your favor and gain you money.
Rental rates around the twin cities have been steadily rising 2-5% year over year. If you buy a home now, you can lock on the current lower interest rate. This means no more yearly increases on rent!
Summer And Fall Market
When it comes to Real Estate, the spring market is always the busiest. In our 2018 spring market, we had low inventory and a surplus of buyers. This brought on many cases of multiple offers. We are already seeing a shift getting into the summer market with more inventory. The fall market is a great time to buy a home and get settled before the snow and holidays. There will still be a good selection of inventory without the competition of the spring market.
Read what our clients say about working with Sheryl and the Selling South of the River Team!
For more helpful home buying advice, check out our Info for Buyers category under Sheryl’s Blog!