With a limited inventory of affordably priced homes and a high demand, searching for a house can feel exhausting. Although the competition and dreaded multiple offer situation may make you want to put off purchasing a home until the market slows, 2020 is actually a great time to buy. Here’s why.
In the Spring, mortgage rates hit historic lows. Homebuyers this time last year were locking in rates around 4.5%, and currently, rates remain steady in the 3% range. Considering the vast majority of buyers finance their homes, mortgage rates directly impact most people’s purchasing power!
The lower the rate, the more purchasing power you have which means you can get more house for the same monthly payment. With a lower interest rate, more of your money goes directly to the principle of the loan—With each 0.125% shift in mortgage rates, your buying power changes, and a 1% difference Who doesn’t want more house for the same amount of money?! Even if you haven’t saved the full down payment you want, a low interest rate will likely translate into ample savings on your monthly payment.
Rates are predicted to stay around 3% through 2020, so if you are on the fence about buying, it may be in your favor to start looking now. These historically low rates will allow you to stretch your dollars and give you more flexibility to find a home that is perfect for you.
