Is Now the Perfect Moment to Dive into Homeownership?
Right Now at 6: High Prices and Rising Rates! Are you feeling the heat in the housing market? With soaring prices and climbing mortgage rates, the dream of homeownership can seem more like a distant fantasy. So, what’s the verdict: should you hit the pause button or dive in headfirst? Our very own Brooke Butler is live in the studio, ready to break it down for us. Brooke, you’ve connected with a mortgage expert and a family navigating this tricky landscape. What did you discover?
Well, Greg and Shannon, it seems there’s no assurance that conditions will improve anytime soon. If you’re on the hunt for a new home, it might just be worth moving forward—provided you get some solid professional advice first to ensure you’re financially ready for the leap. “It’s been a rollercoaster trying to find something suitable for a large family,” Tiffany Clawson shared, reflecting the struggles many families are facing.
“Rent increases every year, and as a large family, we want to secure a place of our own,” she added. But just when they thought they found their dream home, an unexpected hurdle jumped in their path. “We consulted with a lender and discovered that the credit score we thought we had, based on online estimates, was actually far from the reality the lender provided. Their figure was much lower than we anticipated,” Clawson explained.
David Soderlind, the owner of Harbor Mortgage Company, emphasized the importance of consulting an expert before embarking on the home-buying journey. “Many people get caught up using online calculators on sites like Zillow, but that doesn’t give you the full picture,” he said. “Talking to someone who knows the ins and outs is crucial to aligning your numbers accurately.”
So, is now a good time to buy? Soderlind mentioned, “The current market has limited options for first-time buyers in the $250K to $325K range, and prices are creeping upwards. If you find a home you love in a neighborhood you adore, now might be the perfect moment to make your move, especially as the market quiets down. Waiting until spring could mean facing more competition for your ideal property.”
Despite the hurdles, the Clawsons remain focused on their goal of homeownership. “For a $450K home, we’d see about a $300 increase in our monthly payments compared to our three-bedroom apartment. But we’d own it!”
Keep in mind, recent forecasts, including insights from the Mortgage Bankers Association, suggest that mortgage rates are likely to hover above 6 percent for at least the next couple of years. This is a key factor to weigh as you decide whether to buy now or later.
High Prices and Rising Rates: Is Now the Time to Buy? Insights from a Mortgage Expert!
Updated: 6:23 PM EST Nov 26, 2024
CHATHAM COUNTY, Ga. — With escalating home prices and climbing mortgage rates, many potential buyers are left pondering whether now is the right moment to make a purchase.
Tiffany and Danny Clawson are among those facing the hurdles of home buying. “It’s been a crazy quest trying to find something for our large family,” Tiffany expressed. “With rent rising every year, we want to secure a place of our own.”
After spotting what they thought was their perfect home, they stumbled upon an unexpected challenge.
“We talked to a lender and found out that the credit score we believed we had based on online checks was completely different from the lender’s assessment. Their score was lower than we thought,” Clawson shared.
“Credit scores should only impact the homebuying process if there are evictions or defaults on prior mortgages. Your length of employment and income should weigh more heavily,” she added.
David Soderlind, a mortgage expert, stressed the importance of consulting with a professional before diving into home buying to avoid costly surprises. “Using online calculators on sites like Zillow can mislead you. The best course of action is to seek advice from someone knowledgeable to ensure your numbers align.”
When asked if now is a good time to buy, Soderlind said, “Currently, there’s a scarcity of homes in that first-time buyer price range, which is likely to push prices higher. If you find a home that fits your needs, take the plunge now, especially as we approach slower market seasons. Waiting could mean more competition.”
Recent forecasts indicate that mortgage rates could remain above six percent for at least the next two years—a crucial consideration for prospective buyers.
