Questions Every Homebuyer Should Ask Themselves Right Now
A first-time homebuyer or investing in your fifth home? The Homebuying process will never be as easy as opening a pack of candy. Prospective home buyers are likely to have many questions during the process. Even an experienced home buyer may forget how the process works and what the right tools are for making sure the process goes smoothly.
Frequently, various homebuyers ask a wide variety of questions as they progress through a house-search process. They may ask many of these questions before they begin the process of buying a house, during a home search, while in the course of the sale agreement, or long after they have purchased a house.
Rising interest rates have begun to slow an overheated housing market as monthly mortgage payments have risen dramatically since the beginning of the year. This is leaving some people who want to purchase a home priced out of the market and others wondering if now is the time to buy one. But this rise in borrowing cost shows no signs of letting up soon.
Economic uncertainty and the volatility of the financial markets are causing mortgage rates to rise. George Ratiu, Senior Economist and Manager of Economic Research at realtor.com, says this:
“While even two months ago rates above 7% may have seemed unthinkable, at the current pace, we can expect rates to surpass that level in the next three months.”
So, is now the right time to buy a home? Anyone thinking about buying a home today should ask themselves these questions:
1. Should I buy or continue to rent?
Buying a home can be a very solid investment, so keep that in mind if you’re considering buying a home. On the other hand, renting can also be a good choice, depending on the situation. Interest rates are currently low. A 30-year FHA mortgage can be locked in at just over 3.5 , which is pretty low. Especially with the current interest rate, it may be better for some individuals to pay a mortgage rather than rent.
2. Where Do I Think Home Prices Are Heading?
There are two places to turn to answer this question. First is the consensus of what experts are saying. If you look at what experts are projecting for home prices in 2023, they’re forecasting home price appreciation around 2%. While it’s true some are calling for depreciation, most are calling for appreciation in home values over the next year.
The second spot to turn to for information is the Home Price Expectation Survey from Pulsenomics – a survey of a national panel of over one hundred economists, real estate experts, and investment and market strategists. According to the latest release, the experts surveyed are also calling for home price appreciation for the next several years (see graph below):
3. Where Do I Think Interest Rates Are Heading?
Like mentioned above, Ratiu sees mortgage rates rising over the next several months. Another expert agrees. Mark Fleming, Chief Economist at First American, says:
“While mortgage rates are expected to continue to drift higher over the coming months, much of the rapid increase in rates is likely behind us.”
The instability in the world and higher inflation are driving this volatile market, resulting in higher borrowing rates for those looking to buy homes.
4. Do I really need a Realtor when buying a home?
Buying a home is incredibly recommended; therefore, it is strongly suggested that you hire a real estate agent. The Zac Folsom Group at eXp Realty specializes in helping clients with residential and commercial real estate investing. We strongly believe that every house is an investment for whoever buys it and we strive to help you get the best deals when buying or selling real estate.
Hiring a Zac Folsom Group Agent isn’t like getting the run-of-the-mill agent from down the road. We do things differently and it helps ensure better results for our clients.
Our detailed training process and accessibility to the top 1% of REALTORS® in the world allow us to operate on a different level than the typical American agent. When you choose to work with our team you’re hiring more than just a Real Estate Agent you’re getting a professional home advisor.
Agents that work at the Zac Folsom Group are trained to help you distinguish a good property to buy, help you negotiate better deals, help you increase your equity, and most importantly help you close your deal efficiently.
Where to Go From Here
If you’re thinking about buying a home, asking yourself about home prices and mortgage rates will help you make a powerful and confident decision. Experts see both prices and rates rising in the future. The alternative is to rent, but rents are also increasing. That may mean buying a home makes more sense than renting. Whether you’re buying your first home, or an experienced real estate investor closing on their 100th property the Zac Folsom Group has agents that specialize in knowing how to best improve your real estate returns.