Renters who have been thinking of buying a home need to move now!
That is the recommendation from mortgage lenders who are expecting the Spring real estate market to be quite a demanding one.
Low Mortgage Rates
The real estate market’s low mortgage rates are expected to remain that way at least through the end of May. Thirty-year fixed rate mortgages are not likely to rise above 4 percent before summer starts. Although long-term predictions aren’t as certain.
On any given year, spring typically is when the home buying market starts to sizzle and with a financial invitation like this, the real estate market is sure to bring many home buying sideliners onto the field.
High Rental Rates
In addition to the temptingly low mortgage rates, renters may soon be priced out of their current living situation. All indications point to rental rates rising throughout the year. Renters may want to consider not signing a new lease if their contracts increase and secure a home mortgage loan instead. According to experts, now is the time for renters to look into investing in their future with a real estate buy.
First time home buyers are expected to be entering into real estate market, as are those looking to move up. But, these home buyers should know that the year has started as a seller’s market.
Seller’s Market to Start
It is a seller’s market, which is fantastic for anyone who may to list their current home and close a profitable deal on their current property.
The rise in demand isn’t surprising given the past decade that has certainly caused the millennials to remain in a holding pattern when it comes to settling on a real estate property. With the current upswing in the country’s economics, millennials, and other home buyers are making their way back into a buying frame of mind and are finding an unexpectedly low inventory in some markets.
Home Prices on the Rise
The low inventories along with the high demand in buyers are beginning to drive up asking prices on single family homes as well as townhouses and condos. The National Association of Realtors® (NAR) reports the median price of an existing single-family home nationwide was $213,800 for the month of January. That is an increase of 8.2 percent from the first month of 2015. According to NAR, home prices are moving at the highest rates since April 2015.
Because of this, interested buyers may become pushed to take out higher mortgages, possibly even reaching the limits of conventional mortgages. Large down payments may be required, and some forecast jumbo loans to resurface once again this year.
Don’t Wait for the Spring Overload
Interested buyers need to move ahead in order to avoid closing delays. Experts are advising buyers to get into the market sooner rather than later because loan applications and approvals are only going to become more congested. The more paperwork that is turned in as the months move along, the longer it will take to hear back from loan officers.
Truly interested home buyers should get preapproved for a loan prior before beginning to shop for a home. With a preapproval, the buyer could potentially save up to 10 days in completing their closing.