If you are like many who are waiting in the wings to buy property, perhaps there’s no time like the present. Rates are creeping up and are expected to creep higher as the year progresses. Inventory is low and could go lower. So most industry experts are urging those clients postponing a purchase to act sooner than later. Why specifically?
Rates on 30-year mortgages bottomed out at 3.55% last summer. Now that the Federal Reserve finally decided to raise its key interest rate, mortgage rates have been climbing slowly. Today, the average rate is just above 4%; by 2019 or 2020, rates could easily climb to 6%.
According to Kiplinger, “It is highly likely that sometime this year, it will become clear to bond markets that both the deficit and inflation are headed higher, pushing rates higher as well.”
And inventory paints an even clearer picture of why you should start shopping today vs. tomorrow. In November 2016, there were only 1.85 million homes for sale. That’s a nearly 10% drop from the year before. And it continues a trend of steady decline since just before the housing crash, when inventory peaked.
So open those wings (and bank accounts) and fly into the house of your dreams. There’s no better feeling when you’ve landed and building that nest egg with property.
Picture courtesy of Will Saunders/Comedy Wildlife 2016