Market October 13, 2023

Why Now is Still a Good Time to Buy a Home

The real estate market is constantly changing, and it can be tough to know whether it’s a good time to buy or sell a home. However, despite rising interest rates and a shortage of homes on the market, there are still several reasons why now is still a good time to buy a home.

  1. Home prices are expected to continue to rise.

While the rate of appreciation may slow down in the coming years, home prices are still expected to continue to rise over the long term. This is due to a number of factors, including population growth, and limited supply.

  1. Mortgage rates are still relatively low.

While interest rates have risen in recent months, they are still relatively low compared to historical averages. This means that buyers can still qualify for affordable mortgages, even if they don’t have a large down payment.

  1. You can start building equity immediately.

When you buy a home, you start building equity immediately. Equity is the difference between the value of your home and the amount you owe on your mortgage. As home prices continue to rise, your equity will grow. This can be a valuable asset in the future, whether you plan to refinance your mortgage, sell your home, or use the equity to invest in other assets.

  1. You can lock in a low mortgage rate.

If you’re concerned about rising interest rates, you can lock in a low mortgage rate when you get pre-approved for a loan. This will protect you from any rate increases that occur between the time you get pre-approved and the time your loan closes.

  1. You have more negotiating power.

In a buyer’s market, sellers may be more willing to negotiate on price and terms. This is because there are more homes on the market and fewer buyers, giving buyers more leverage.

Of course, there are also some challenges to buying a home in the current market. The inventory of homes on the market is still low, and competition from other buyers can be fierce. However, if you’re prepared to act quickly and be flexible, you can still find a good deal on a home.

Here are some tips for buying a home in the current market:

  • Get pre-approved for a mortgage before you start shopping for a home. This will give you an idea of how much money you can afford to borrow and will make you a more attractive buyer to sellers.
  • Be prepared to act quickly. Homes are selling fast in the current market, so it’s important to be ready to make an offer when you find a home that you love.
  • Be flexible with your criteria. If you’re willing to compromise on some of your must-haves, you’ll have more options to choose from.
  • Work with a qualified real estate agent who can help you navigate the market and find the best home for your needs.

Most mortgage companies are coming up with innovative strategies to alleviate the concerns of buyers during a time of higher rates. Joseph Murdock of Navy Federal Credit Union stated “At Navy Federal Credit Union we are offering 2 refinance products that I think can help make the future a little more affordable for buyers. The first is our new “No Refi Rate Reduction” product. This product is available on our Choice Products which are both 100% financing with no private mortgage insurance and on our traditional conventional jumbo. After the buyer has made 6 consecutive payments, they will be able to refinance for a lower interest rate for a flat fee of $250. There are no other closing costs or fees associated with this product.

Another great advantage is that there is no limit to the number of times the buyer can take advantage of this refinance product. We also offer a VA interest rate reduction refinance loan (IRRRL). This product is specific to refinancing a VA loan for the sole purpose of getting a lower interest rate. In most cases, an appraisal is not required, and the closing costs are typically very low. The prices of homes will probably not ever be lower than they are today. Typically, when interest rates drop the price for home purchases goes up. Don’t let interest rates detour you from making that home purchase. One of these two great refinance products can help you make the purchase of your dream home an affordable reality.”

If you’re thinking about buying a home, don’t let the current market conditions deter you. There are still many good reasons to buy a home now. By following the tips above, you can increase your chances of finding a good deal and getting the home of your dreams.