After last year’s predictions that mortgage rates were going to increase, it’s surprising to hear that they are actually at their lowest level in over three years. According to Freddie Mac, the 30-year fixed-rate mortgage recently dropped to 3.45%, and the 15-year mortgage is now at 2.97%. It may sound strange, but money is “cheap” right now–and that’s why 2020 is a great time to buy a home.
With mortgage rates being so low, smart people are taking advantage of their affordability. While most housing economists believe that mortgage rates will remain below 4% in 2020, everyone knows they won’t last forever. That’s why there’s no better time to invest in the house of your dreams. If you’re thinking about buying, consider these ideas:
Buy before you sell (yes, really)
It’s not as crazy as it sounds. Here’s why–home prices are rising faster than mortgage rates are dropping, so if you find your dream home, buy it. With it being a seller’s market, your current home should sell quickly. Besides, the inventory of available homes is so low, it could leave you without a place to live–a position you want to avoid. With buyer demand as strong as it is, and the housing supply as short as it is, homes may be less affordable a year from now. Take advantage. Buy your new house, then price your current home appropriately to get it sold asap.
Sell now so you can buy
To carry a bit less risk and put yourself in a better position to buy, go ahead and work with an agent to sell your home right away. Since it’s a seller’s market, it’ll be no surprise to see bidding wars on the best available inventory. There’s another significant advantage to selling your current home now–your offer on a new home will get the seller’s attention since it won’t be contingent on the sale of the house you’re living in now.
Trade-up and gain value
Do you want to downsize or rightsize to a new home without compromising on luxury? Or upgrade your lifestyle to daily, resort-like living? Both may seem like expensive budget-busters, but they’re not. The low mortgage rates offer buyers more affordability on higher-value homes and communities. The low rates extend your purchasing power while giving you better return-on-investment opportunities on your next home purchase.
So yes, the time to buy is now because nothing lasts forever. Interest rates will go up, and home prices will continue to rise. Who knows, you may discover your dream home is right here at Soleil Laurel Canyon. Take a look at our current listings at our highly award-winning, 55+ community, then contact us for a tour. We can’t wait to introduce you to your fantastic new home and lifestyle.