Currently, we are seeing rates on home loans at such levels that some are beginning to question whether renting is in their best financial interest at the current time, as some areas of the nation are not only offering homeowners opportunities to get a low rate on their mortgage, if they qualify, but home prices that have seen decreases over the past months may also set up a situation where homeowners could get their home at a low price as well. Yet, these are obviously ideal situations when it comes to getting a low interest rate on a home that has a low price as well, but potential buyers are often said to be hesitant to enter the housing market as confidence has varied over the past weeks in terms of whether potential homeowners feel they can afford to buy a home at the present time or what their outlook may be in terms of their career and income as well.
While there are conflicting reports saying some consumers do not have confidence and this may lead to lower retail sales over the holidays, with some reports indicating that consumers are more confident as they continue to use credit and acquire debt, as well as pay off what they will in some areas, buying a home is obviously a big step for anyone and as some feel that the economy is still on shaky ground or has a long way to go in terms of recovery, this is where some officials feel that hesitation has originated.
At the present time, rates on home loans, specifically a 30-year fixed rate mortgage is still around 4% for buyers who qualify for this optimal rate, but this does not mean that all homeowners can afford other aspects of purchasing a home at the present time. Recently we have seen reports that some banks are offering discounts on closing costs or more affordable fees in order to attract buyers into the housing market, which has a great deal of inventory that these banks hope to move, it has not spurred enough buying to begin absorbing the number of foreclosed homes or empty homes at a substantial rate.
Yet, frustration has grown in that some renters are seeing higher costs on apartments or homes which they rent, as the rental industry is taking advantage of this hesitation by homebuyers and, in many areas, are able to fill up their properties more easily with those who are seeking to rent at the present time. While there are arguments that, for a set time, renting may be more beneficial than buying a home, when it comes to someone who is considering buying a home many officials often advise caution before entering into a mortgage agreement without fully weighing the costs.
If consumers are simply hesitant to buy as a result of a lack of confidence, this is obviously a personal decision but some may be in a position where their job could potentially be at risk in the coming months or year, which would obviously put them in a situation where buying at the present time is going to be the wrong choice. Yet, it’s still being pointed out that for consumers who are in a stable financial position, may have money saved up to me certain closing costs, and already to transition from a rental to a home, a certain aspects of the economy can make home buying more affordable at the current time, but again consumers always need to look at their financial position, their credit score, and the costs that come with purchasing a home before making any major decisions.