by David Brenton’s Team
Home-ownership has always been recognized as a reliable way to build long-term family wealth. The longer you delay purchasing a home, the longer you are waiting to put the power of home equity to work for you.
Many people focus solely on price when talking about home affordability. Since home prices have appreciated throughout the past year, they assume homes are less affordable. However, home affordability is determined by more than just purchase price.
How can a home be more affordable despite a higher price? It is simple. Interest rate. When financing a home, interest rates are a critical factor in a payment and in a home’s ultimate affordability.
“Good news for buyers, interest rates remain affordably low, and as a result, homes throughout the country are MORE affordable today than they were a year ago.”
As interest rates have decreased, buyers are now paying less for their monthly payment for the same price home. This allows buyers to determine if they would like to purchase a higher priced home for the same payment.
With mortgage rates remaining near historic lows, Fannie Mae and others have increased their forecasts for housing appreciation. If home price gains are about to re-accelerate or “increase”, buying now rather than later makes financial sense and means lower payments.
These factors could change at any time, so it may be time to make your move. Let’s get together to see if buying now makes sense for your family.