Outside of a strong economy, low unemployment, and higher wages, there are three more great reasons why you may want to consider buying a home this spring instead of waiting.
1. Buying a Home Is a Great Investment
Several reports from the Federal Reserve Bank, Gallup, and Porch.com all indicate Americans believe real estate is a good investment, topping other options such as gold, stocks, bonds, and savings. Why? Real estate helps build equity, a form of investing for you and your family. The Equity Report from ATTOM Data Solutions says:
“14.5 million residential properties in the United States were considered equity-rich,
meaning that the combined estimated amount of loans secured by those properties was
50 percent or less of their estimated market value. The count of equity-rich properties in
the fourth quarter of 2019 represented 26.7 percent, or about one in four, of the
54.5 million mortgaged homes in the U.S.
If you want to build your equity, this year is a great time to start putting your housing costs to work for you through homeownership.
2. Mortgage Interest Rates Are Low
The Primary Mortgage Market Survey from Freddie Mac indicates interest rates for a
30-year mortgage have fallen since November 2018 when they reached 4.94%. In February of 2020, they hit the lowest level in three years (3.45%). The latest Freddie Mac forecast notes how mortgage rates are expected to remain low, leveling out to an average of 3.8% this year.
When you purchase a home at a low mortgage rate, it will impact your monthly mortgage payment, giving you the opportunity to potentially buy more house for your money.
3. Investing in Your Family Is a Win
There are some renters who haven’t purchased a home yet because they’re uncomfortable taking on the obligation of a mortgage. Everyone should realize that unless you’re living rent- free with friends or family, you’re paying a mortgage – either your mortgage or your landlord’s.
Today, according to the March 2020 Rent Report on apartmentlist.com, average rental
prices continue to rise. This means your landlord benefits each time you pay more on your lease. When you’re paying your landlord’s mortgage instead of your own, you’re not the one earning the equity.
As an owner, your mortgage payment is a form of ‘forced savings’ you can use later in life to reinvest in your family. You can put it toward a variety of investments, such as saving for your children’s education, moving up to a bigger home, or starting your own business. As a renter, it can be more challenging to achieve those types of goals without home equity working
Buying a home sooner rather than later could lead to substantial savings and long-term financial growth for you and your family. Let’s get together to determine if homeownership is the right choice for you this spring.