Predicting the perfect time to buy a home is a lot like predicting the weather. Both are tough to time with absolute certainty. But, if you know what conditions to look for, you can increase your odds of success. As we head into this year’s spring home buying season, a perfect storm of frightful financial data is brewing. Acting now could save you from getting caught in the downpour.
Dark Skies Ahead
Here are the three fronts of the home buying perfect storm. Ignore them at your own peril.
- Interest rates are still lower than they’ve been when we look back over the decades. But these rates have been rising for months now and will probably continue to do so.
- Home prices have also been rising. According to CoreLogic, home prices have risen by over 12% from a year ago and they’re still going up.
- Wages are virtually flat and are having a hard time keeping up with inflation. If your paycheck seems to be stalled in neutral, you’re not alone.
A Bright Spot in the Forecast
So with rising interest rates, rising home prices and stagnant wages, how can you take advantage of the calm before the storm? By purchasing your home now before the skies darken!
Locking in at today’s relatively low mortgage rates before they continue to rise to their historical average can save you thousands of dollars in interest payments over the course of a home loan. And, using that low-interest mortgage to purchase a home today before home prices further rise is also a financially savvy move. Having the courage to protect yourself from the approaching home buying perfect storm will pay dividends for you and your family for decades to come.
To learn more about all the great loan options from Quicken Loans click here.
If so, subscribe now for tips on home, money, and life delivered straight to your inbox.