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Why Home Buyers Should Dive in NOW

With the current hot housing market, you may feel a bit overwhelmed with making a Real Estate purchase. Although you may think it may be wise to wait for the Real Estate market to cool off, data has shown you may benefit from simply diving in, as long as you are financially prepared to do so. 

Mortgage Rates are still low

On February 4th 2021, FreddieMac reported that mortgage rates remained flat and near record lows. Low interest rates will lower the amount of money you will pay to borrow the mortgage, and low interest rates can boost your buying power since a smaller portion of your monthly payment will be put towards interest. This means you can afford more house than you would be able to in a higher rate environment! For example, with a mortgage rate of 2.68% for a 30-year fixed loan and a 20% down payment, it could cost the typical home buyer about $861 a month plus taxes and insurance to buy a home. Check out the weekly mortgage rate averages from February 4th, 2021 below.

It is always important to buy a home when it is the right time for your family. However, as a home shopper, you should do your best to stay educated about the current market trends in order to make smart decisions that will maximize your buying power. Jumping into a Real Estate purchase sooner rather than later could save you hundreds of dollars a month or save you fewer compromises to stay within your budget. If you do not have much time to spend researching the current market, we provide weekly updates on our social media pages about the Real Estate market to keep our clients and prospective home buyers informed and educated.

Home Values Are Expected to Rise

According to Zillow, home values are expected to increase by 10.5% by the end of 2021. If you are looking to stay within a certain monthly budget, buying now could give you more affordability. If home values rise to only 8% and interest rates climb up to 3%, a home purchase could cost you $969 a month rather than the $861 monthly payment you could receive by choosing to purchase now. In addition, if home values spike by 12%, the scenario could result in a monthly payment of $1,005.

According to the Tomball Community Impact newspaper, home sale prices have been up year-over-year in most Tomball and Magnolia zip codes as of December 2020. Magnolia has seen the greatest increase year over year at 11.32%. Check out the median price of homes sold with year-over-year percentage change below.

With today’s rates at near historic lows, you will be able to benefit greatly by making a home purchase now. Although rates are only expected to increase slightly as the economy recovers from Covid-19, when the math is done, you can clearly see how lower rates can significantly impact your monthly payments for the life of your mortgage. Michele Harmon Team can help you stay informed about the current market and connect you with reputable lenders to help you find the best deal possible. If you are thinking about making a Real Estate purchase, we highly recommend diving into it now. Call Michele Harmon Team today at 713-818-1330. Your home is our business and we will work hard to find the perfect home for you! Your dream home is waiting for you.

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