Buying a Home This Winter

Buying a Home This Winter

While the weather has cooled off, the housing market has not and isn’t expected to in the near future. If you have been waiting for the market to cool, now may be the time for you to make a move. Here’s a dive into some of the biggest wins for homebuyers this season.

1. Mortgage Rates Are Still Low

Last year mortgage rates fell below 3%, the lowest mortgage rates in recorded history. This season they are inching up slightly, but are still incredibly low. The current 30-year fixed mortgage rate is 3.5%, however, Freddie Mac projects those rates will increase to 3.8% in the fourth quarter of 2022.

Today’s low mortgage rates are creating a great opportunity for buyers, but it’s unlikely they will last.

2. Buying is More Affordable Than Renting

Buyer purchasing power is strong with today’s low mortgage rates. Buying a home now instead of renting can be the game-changer that amplifies long-term savings for renters who are ready to become homeowners. Owning a home is often more affordable than renting, allowing the homeowner to reinvest in their own favor. Every mortgage payment made is a contribution to the owners’ net worth, allowing them to build equity, one of the biggest financial benefits of homeownership.

3. Equity is Growing

CoreLogic, a leading global property information, analytics and data-enabled solutions provider, reported homeowners with mortgages have seen their equity increase by 31.1% year-over-year, for the third quarter of 2021. This represents an average gain of $56,700 per borrower since the third quarter of 2020. Here in Ohio the average third quarter gain has been $27,000, a $9,000 increase from second quarter 2021.

4. Home Prices are Appreciating

According to many leading experts, home prices are expected to appreciate through 2022. When home values rise, your equity increases.

Knowing that home values are increasing while mortgage rates are so low, should help you feel confident that buying a home this year is advantageous from a price perspective and as a strong long-term investment.

Bottom Line

With today’s low mortgage interest rates, now may be the time for you to make the move to home ownership. Let’s connect to discuss how we can help you successfully maneuver through the homebuying process.