The prices of homes are going up and mortgage rates are increasing.
So, should you wait to buy? The answer to this commonly asked question is simply, “No!” Here is why.
Home values have in fact gone up over the past few years which has spurred the talk of a bubble. This chatter is simply false and filled with mis-leading information.
While prices have appreciated at a seemingly high rate, we expect them to continue increasing but at a more moderate level as we move throughout the year. These appreciation rates do not suggest that we are nearing a bubble, nor that homeownership is no longer affordable. It’s quite the contrary.
Mortgage rates have already increased slightly, and the expectation from experts is that we will continue to see a moderate rise throughout 2021.
Recent movement in rates have created some negative buzz, but that should become more mute moving forward. Just like price appreciation, rising mortgage rates should not deter you from purchasing real estate. In fact, just the opposite is true.
Home prices are being pushed by a lack of supply. Pandemic health concerns are decreasing as vaccine distribution expands, GDP is increasing, employment is rising as jobs are coming back, and the economy is improving. All these factors have a direct correlation to price and rates. Price appreciation is not expected to falter nor are interest rates expected to decline.
Given this information, waiting to buy will cost you more money in the long run.