The Home Loan Expert Team has looked at the trends, and if you’re not sure that you’re ready to buy a home, here’s why the summer of 2016 should be the year you take the plunge.
With mortgage rates staying near historic lows for the past few years, many people that were on the fence about buying a home in Chicago have taken the plunge, wanting to make sure that they get the lowest rates and save the most on their home. Here are the 4 reasons why, if you haven’t already taken advantage of the great low interest rates, you should in 2016.
1. Home Prices Are Rising
Month-to-month, home prices are rising, due to demand for low rates and a low inventory. Everybody is trying to take advantage of today’s low rates to buy a house. Many homeowners are choosing to refinance and save money, and new construction isn’t keeping up with the market.
Builders are also expected to focus on starter and mid-range homes, giving new and first-time homebuyers more options to get into their first home. This puts less of an emphasis on bidding wars and can help ease prices.
2. Low Rates Won’t Last Forever
The Federal Reserve has pledged to raise interest rates this year – although they claimed the same in 2015. However, the party won’t last forever. Many people on the fence that wait too long are going to miss out.
Don’t miss out.
3. Rent Increases Aren’t Going Away
In most cities, buying will be cheaper than renting because rent will continue to rise, especially in hot markets.
While your mortgage may rise this year, it’s still a better deal than the rising rental rates across the country.
Interest rates would need to rise to around 6.5% for the cost of buying to equal that of renting on a national level. Stop throwing your money and time down the drain by renting.
If you still have questions, check out our mortgage F.A.Q. or Glossary to help answer them, or ask us in the comments here or on Twitter. Take advantage of lower mortgage rates to refinance and save money. Call us in St. Louis at (314) 781-9700, Chicago at (773) 770-6438, Indianapolis at (317) 550-1515 and Nashville at (615) 810-8555.
You can always apply online at www.thehomeloanexpert.com, and we’re also open on Saturdays to better serve you. Don’t forget to follow @TheHomeLoanEx on Twitter for breaking mortgage news and knowledge. Nobody gets lower rates on better loans than The Home Loan Expert, Ryan Kelley, why go anywhere else?