Many potential buyers are still waiting in the wings, not sure that now is the time to buy a house. They are often afraid of buying before the market has fully recovered, and are concerned that they may lose out if they jump in too early. Here are 5 reasons they should buy NOW and not wait…
1) Mortgage Interest Rates are on the Rise
While no one has a crystal ball, all of the technical, fundamental, and economic indicators point to mortgage rates moving up in 2013. All likelihood is that we have seen the best rates already, and waiting is not going to bring them back.
2) Rents are Continuing to Skyrocket
Recently, Zillow reported that rents increased in the U.S. by 4.2% over the last year. When compared side-by-side, the costs of owning vs. renting a home easily show the benefits of home ownership.
3) Prices are on the Rise
Home prices in most markets are stabilized, and even starting to increase. This will be hampered slightly with the over cautious approach of appraisers and lenders, but the trend is still showing prices beginning to rise.
4) Mortgage Guidelines Will Continue to Tighten
With government intervention added to an already overzealous underwriting standard, we are poised to see it become even more difficult for the average buyer to qualify for a home loan.
5) FHA Loans To Become Much More Expensive
Starting with FHA Case Numbers pulled on or after June 3rd, 2013, FHA will dramatically raise the costs of FHA Mortgage Insurance, making these loans much more expensive for the consumer.