My wife and I are considering buying a house now although it’s a year earlier than we planned. We don’t know if the low rates will be available next year. Should we go for it?
Buy or Hold?
Dear Buy or Hold,
You and your wife are not the only ones with this mindset. Homeownership is on the rise in different parts of the United States. People have been stuck at home with time to research available inventory in different parts of the country. The historic low mortgage rates and pandemic fears along with the flexibility of remote work are propelling many to buy. Some are seeking to leave areas where crime and disruptive protesting have impacted their livelihoods.
It is a good time to buy a home, but only if you are ready. Let’s look at the trends first then some pros and cons of buying now.
You can read Zillow’s Forecast here. I have pulled some of the highlights which point out that rates are low, but so is inventory:
“Low mortgage rates are poised to stay for a while, so buyer demand should stick around even as seasonal headwinds start to form. Although, there are some storm clouds gathering. Broader uncertainty due to the surge in coronavirus cases and the prospect of disappearing fiscal support pose looming limitations as well. Historically low levels of for-sale inventory also has the potential to thwart the strong gains the housing market has recently enjoyed, and while for-sale inventory rose slightly in June, inventory remains significantly below last year’s levels. The coming months will be a true test of the housing market’s enduring strength and resilience.”
It Is Good to Buy a Home
There are benefits to homeownership that include safety, security, and accessibility to desired education and lifestyle opportunities. Habitat for Humanity acknowledges the crucial role of homeownership in society:
“Habitat for Humanity knows that safe, decent and affordable shelter plays an absolutely critical role in helping families to create a new cycle, one filled with possibilities and progress. Affordable homeownership frees families and fosters the skills and confidence they need to invest in themselves and their communities. The outcomes can be long-lasting and life-changing.
Studies conducted by academics and experts draw a straight line between housing quality and the well-being of children. Surveys of Habitat homeowners show improved grades, better financial health, parents who are more sure that they can meet their family’s needs. Wherever we work, we witness tangible evidence that strong and stable homes help build strong and stable communities.”
Click here to read more.
SOURCE: Christian Post, Chuck Bentley