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1.Home Ownership is now more affordable then renting.
According to a recent articles, rents are up nationally 3.7% over last year with some markets seeing an increase of 5.3%. If you continue to rent, your rent will increase annually. If you obtain a fixed rate mortgage, you will be paying the same monthly payment for a period of years.
2. Home Ownership means the creation of wealth.
A good portion of someone’s wealth comes from the property they own, including the one that they live in. According to a recent Home Price Expectation Survey, each year over the next five years, home values are expected to increase on an average of between three and four percent. This means that if you purchase a $250,000 home this summer, your wealth would increase almost $50K before 2020.
3. Interest rates are still at record lows.
The all-time high for interest rates was in 1981, when rates went as high as 18%. Currently rates are still low, but Freddie Mac projects that will increase approximately 1% before the end of the year. A one-point increase in interest means that you will spend more on interest. As a result, you will be able to afford less.
4. Home prices are increasing.
The market is on the move. More buyers and sellers are coming into the market and there is an increased demand for homes as more people recover from the Recession. In fact, the S&P/Case -Shiller Home Price Index recorded a 4.1% annual gain in October 2016 with a 0.8% increase for the month. Combined with the fact that interest rates are also increasing, it becomes much more important to make your next home purchase as soon as possible.