Home prices have seen a big drop over past weeks and mortgage rates have been at record lows over the past few months. It’s for this reason that many people have been able to get an affordable home thanks to low costs and low mortgage rates. People that are able to get an affordable monthly payment are more likely to jump into the housing market than someone who may be offered a costlier mortgage that might cause them to strain their budget.
While the ability to afford a home is the first step before even considering buying a house, many people believe that with home prices at such a low and mortgage rates on a 30 year fixed-rate mortgage being around 5%, now is the best time for people to buy a home. These mortgage rates are not as low as they were a month or so ago, however, they’re still quite affordable for many people.
What most people are concerned about is not low home prices but rather will home prices continue to fall if they buy. Many people are suffering from an underwater mortgage which is causing them financial strain and frustration since they owe more on their home than their home is worth. Sadly, in some areas it’s believed people have seen such a decrease in their home that it’s unlikely they will regain the value that their home once held.
While home prices and low mortgage rates can make a home more affordable, anyone looking to buy a home should do their research first. Being able to afford a home is the first step, as a mortgage agreement is not something to be entered into lightly. Also, researching property values and real estate news in the area where you want to buy a home will be necessary to see if home values in that area are predicted to go lower.
Since buying a home is a massive responsibility, taking extra time to do the research and find out what is going to best benefit you financially is going to be well worth the wait when it comes to getting a home.