If you’ve been on the fence about purchasing a home, now is the time to buy in order to take advantage of the current low rates and housing prices, and to avoid spending more money than you’ll have to in the long run.
Rates have increased almost .75 of a point in the last six months and may continue to increase throughout the year. Currently housing prices are low, but even if housing prices continue to fall, it will be more advantageous for you to take advantage of both low pricing and low rates while they’re both available. Also, such is the case with groceries and gas prices, rent also seems to be following that same path, as apartment rental rates increased nationwide in the first quarter of 2011.
Former homeowners that have had to sell their homes due to foreclosure have turned to renting. An increase in renters and a stabilization of supply of rental units have caused a decrease in vacancy and a rise in rent. Instead of making a rental payment that continues to increase, jump on these historically low housing prices and interest rates and buy the most affordable home at the lowest cost now.
Also, with the government calling for adjustments to the definition of a “qualified residential mortgage”, stricter guidelines may soon be in place; certain mortgage types may become obsolete and down payment requirements can increase, making it more difficult for some people to obtain financing. The bottom line is that loan qualifications will get tougher and the costs of a mortgage may increase, so now is the best time to buy a new home.