Is Now The Time To Buy A House?

The housing market can be very unpredictable. At one moment, financial experts are saying it is the best time to buy a home, but before you know it, they're saying otherwise.

So when is the right time to own a home? The following are a few helpful tips on the right time to buy. 

A Strong Economy

Many financial pundits agree that 2019 has been a strong economic year. The job market has remained strong, with low unemployment rates, and wages have increased year-over-year.

This combination has provided people with more buying power, strengthening the economy. The increase in buying power has made homes more affordable.

All of these factors help make the economic conditions favorable for home buying.

Mortgage Rates

When you look into buying a home, one of the most critical factors you should consider is the mortgage rate.

Mortgage rates are a significant contributing factor in terms of whether it's an excellent time to buy a home or not.

The 30-year fixed mortgage rate sits at 4.75%, which is lower than a recent seven-year high of 4.94%.

Some financial experts believe the mortgage rate may dip even lower, with Fannie Mae  predicting the rate could drop as low as 4.6%.

These rates can change at any moment. If you feel the current mortgage rate is within your desired range, then there is no reason to wait around.

Home Price Growth

What might seem like an obvious factor in determining if it’s the right time to buy a home is often not initially considered: home price growth.

Prices have increased slightly by 6% over last year. The most significant increases occurred with lower-priced homes, which is not ideal for entry-level homebuyers.

Many experts believe there will be a slowdown in price growth, potentially to as low as 4%. Rather than wait for that slowdown to occur, a potential homebuyer should begin to get their finances in order now. That way, they can be in an even stronger position should the growth rate slow down further.

Affordability 

Perhaps the No. 1 factor when it comes to buying a home is how much you can afford at that moment.

After reading these steps, you might be thinking that you should wait a little bit longer to see if the mortgage rates drop and home price growth slows down.

It's tough to predict the housing market, and mortgage rates and values can increase in a moment's notice.

If you are looking to purchase a home now, and you find one that you like and can afford, then there is no reason to wait around.