In 2019, the 30-year Fixed Rate Mortgage (FRM) is expected to rise to 5.1 percent. With this projected hike, now is the time to buy a house if you have been thinking of taking that step.
While the primary reason you should act this year to realize your dream of home ownership is the projected rising interest rate, there are other factors at play too that suggest now is the right time to buy a house.
With the year more than half over, it might seem like a rush to think about jumping into the housing market right now. However, you cannot afford to wait. We will show you why buying a house in 2018 is a strong financial decision. Keep reading below to get mortgage savvy and realize your dream of home ownership.
Generational Shift and Home Prices
In 2019, there is going to be a shift in the largest generation. Millennials will outnumber Baby Boomers in sheer numbers. This event suggests that the competition among new homebuyers will increase as millennials and their families earn more and want to own their own homes.
Higher competition can lead to higher home prices. In addition to the loans themselves rising in cost, it is projected that homes will rise in cost as well as demand rises.
The good news is that while home prices will rise, the increase is slower now than it has been since 2017, which makes now the best time to buy a home.
Inflation trends upward, and if salaries do not match the rise of inflation, then homes could become more difficult to purchase. This reality is most often the case for first-time homebuyers. If you have been thinking of purchasing but you have stalled because you do not know when to buy a house, the time is now.
Overall, it is expected that in 2019, due to these factors, the cost to own a home could increase as much as 10 percent.
A balanced housing market exists when supply meets demand. When there is more supply than demand, we are in a buyer’s market. When there is more demand than supply, we are in a seller’s market.
Lately, there have not been enough homes on the market. Bidding wars and lightning fast sales have marked us in a seller’s market. Due to new construction, this trend might be starting to change.
While there is more new construction than there was last year, it is not enough to loosen up the supply yet. However, the other factors at play–inflation, a generational shift, and the rising interest rates–mean that buyers cannot afford to wait until the supply swings toward a buyer’s market.
Wrapping Things Up
If predictions are correct, 2019 could be a difficult time to buy a house, financially speaking. Thus, there is no time like the present as industry experts say this is the right time to buy a house.
Get your home before interest rates and home prices rise and the millennial generation fully impacts the housing market. If you have questions about securing a mortgage or when to buy, contact us for assistance.
7th Level Mortgage is a leading one-stop mortgage company providing deeply informed, custom-tailored assistance with every phase of each mortgage transaction. If you are searching for a home loan in New Jersey, Pennsylvania, Delaware, Maryland, New York, or Florida, please contact us today so that we can determine the best Mortgage Lender to place your loan with and get you the best possible rate and program.