Why 2016 is the Best Year to Buy a Home
Jan 14, 2016
Happy New Year! One of the most common questions people wonder when considering buying a home is, “Is now a good time?” It is a valid question, as buying a home is a huge financial commitment and so many different things play into the housing market. Well, we have great news for you: 2016 is the best year to buy a home. Here’s why:
There are a ton of homes on the market.
2016 is expected to see much more new developments of “starter homes” and mid-range homes. This is great for people looking to purchase their first home. In addition, the slowdown of housing costs this year will prompt more people to sell. Prepare to have a ton of real estate to choose from in 2016.
The price is right.
Home prices have been steadily increasing for a while, deterring potential homebuyers from taking the plunge into the housing market. However, rates are only expected to rise 3.5% in 2016. This should be convincing enough for many individuals looking to perfectly time the purchase of their first home.
Renting is getting more expensive.
While housing prices are going down and interest rates remain low, the cost of rent in major US Cities and national averages is rising exponentially. While buying is more of a financial commitment, it is currently a much better bargain than renting. National rent averages are expected to continually rise throughout 2016.
Mortgage rates are still low.
You may have heard that the Federal Reserve will be increasing interest rates soon. This means that 2016 is the best time to buy your home before the interest rate hikes up. The interest rates are expected to go up gradually, but the sooner you take advantage of these historically low rates, the better. Take advantage of the incredible rates that may never again be this low in your lifetime.
Whatever you decide to do in 2016, Home Point Financial Corporation is here to help. Contact us today to talk about your mortgage options for 2016.