3 Reasons Why You Should Buy A House Today!
3 Reasons Why You Should Buy a House Today!
Still thinking of buying a house?
Homeownership can help you save money, build net worth, and provide a sense of security and well-being. However, many Americans are still experiencing the effect of the economic crisis of 2008 and Superstorm Sandy. A challenging job market and rising home prices are other factors challenging homeownership.
But the American Dream lives on. Americans still believe in the benefits of homeownership despite the recent housing and economic crisis.
Here are 3 reasons why you should buy a house today:
1) Save money and build net worth: Homeownership is 35% cheaper than renting in the US, including the 100 largest metro areas. A homeowners net worth is over 30 times greater than renters. A homeowners net worth averages $174,500. A renter’s net worth averages only $5100.
2) Take advantage of low mortgage rates:
National mortgage rates are still low compared to a historic average of 6.06 at the beginning of the financial crisis in 2003, to an average of 4.78 from 2008 until today.
Borrowing costs are at a 4-month low with an average rate for a 30-year fixed rate mortgage of 4.1% for the week.
Low mortgage rates are due to The Federal Reserve buying mortgage backed securities to stimulate the economy. The Fed has decided to continue to purchase bonds which will keep mortgage rates down, but not for long.
Mortgage rates will rise when the Fed beings to taper, or diminish, bond buying. Projected interest rates will be about one or more percent higher in 2014.
3) Take advantage of a balanced market: Home appreciation values are leveling off as we enter the off-season in the real estate market. Increases in home equity earlier in the the year enables move-up buyers to make a down payment on a bigger house. As more houses become available, the housing inventory supply increases, and home prices stabilize. A balanced market benefits both buyer and seller: sellers can make the move they want and buyers can find a suitable home they can afford.
The time to buy is NOW! Take advantage of the low mortgage rates and balanced market to save money, build net worth, and maximize your purchasing power!
Graphs courtesy of Keeping Current Matters.
Read more about mortgages at Money News.