3 Reasons Why 2016 is a Good Year to Buy a New Home
January 15, 2016
Financial experts predict that 2016 is going to be a great year to buy a new home. Here are 3 reasons why. Mortgage rates are climbing. The historic low interest rates on mortgages will creep upward. With the Federal Reserve expected to increase rates, new home buyers should recognize that waiting much longer will cost them. “You are likely to get the best rate you will possibly see, perhaps in your lifetime, through the majority of next year,” said Jonathan Smoke, chief economist at Realtor.com in December 2015. Employment has become more secure. Businesses are hiring again. Unemployment figures dropped nationwide to 5.3% in June of last year, a dramatic improvement over the 10% unemployment rate in 2010. With more people off the job market, more buyers should qualify for the housing market. Rents keep going up. Supply and demand in the rental market favors the landlord. Expect monthly rent to keep rising every year. Meanwhile, you could get a low-interest mortgage (with a low down payment) that will not be subject to the same fluctuation. Bottom line? Stop procrastinating. Make 2016 the year you reap the rewards of home ownership.