Interest Rates are at an All-Time Low: Is now the Time to Buy?

Financial expert Logan Mohtashami of HousingWire predicts all time low mortgage rates for 2021, and continuous stability throughout the year. Based upon last year’s mortgage rates, which were not above 4%, there is an expectation that buyers can anticipate the same rates for this year. While this could change based upon a few factors including the pandemic, it will likely still stay low and keep dropping.

Should I Consider Buying a House in 2021?

If you are already on the market for a home, the mortgage rates are optimal for buyers. 4% mortgage rates and below are almost unheard of, and many people are taking advantage of this. Since mortgage rates are so low, the cost of borrowing is cheap! While low mortgage rates are ideal for any borrower, this has had an adverse effect on some markets.

While mortgage rates are down, sellers are increasing home prices to make a profit, and to keep up with the market trends. There is no simple yes or no answer when it comes to buying a home, as there are many factors that can influence your decision as a buyer. Home values are on the rise, but there are local prices and neighborhood prices that can influence your decision as well. If you are already actively searching for listings and looking for the right home, now may be the time to consider buying a home. A large down payment, as well as low mortgage rates could help you save money in the long run.

What to Consider Before Buying

Before buying a home, consider the five-year rule. If you plan on moving from that location within the five to seven years after closing, you’ll likely lose money. If you are looking for a long-term home or are looking for a place to grow into as a family, buying a home can mean building equity for the long run.

Before buying a home, consider your price point. Can you afford this home? Will you be able to afford it if the cost of living in the area goes up? Additionally, how will you budget your income(s) to afford other expenses?

These are all questions to consider as a buyer on the market. Buying a home is a big decision, even if the mortgage rates are low! There are many different factors to consider as a buyer looking for the right home. Be mindful that you are choosing the right realtor to work with, as it can make your buying experience better! The right realtor will be able to help you look at your budget to find the right fit for your financial situation, as well as your future goals.