Are you looking forward to spending your money to buy a new home? Then you might wonder whether now is the right time to do it or not. According to a recent study conducted by Fannie Mae, it was identified that homebuyers in 2022 are quite hesitant to go ahead and make a move. The increasing mortgage rates is one of the biggest reasons behind it. On the other hand, house prices continue to rise and job stability is quite a concern for people.
However, numerous reasons are there to prove the fact that now is the right time for you to go ahead and buy a home. Let’s take a look at those reasons in detail. Then you can decide whether to go ahead and buy a home or not.
- Mortgage rates are dropping
Housing mortgage rates started dropping back in the month of July. As of now, we can see how the mortgage rates continue to go down along with time. According to the statistics of Freddie Mac, it is clear that the mortgage rates for a 30-year mortgage has dropped by around 0.40%. The rates continuously drop, and you can take it for your advantage and proceed with buying a home.
When the mortgage rates are failing, buyers will obviously be benefited. This would even increase the purchasing power of people. If you want to get the most out of dropping interest rates, you can proceed with investing on a new house.
- More homes are available for sale
Another reason on why you should buy a new home now is that there are lots of homes available for sale out there in the market. This fact is proven according to the numbers of Federal Reserve as well. There is a clear difference in the number of houses that were available for sale in December 2021 and now.
When you take a look at the current pace of sales, you will notice that the national housing inventory will be sold out in a period of just 11 weeks. This is a 62% increase when compared to the beginning of this year. When there are more homes available for sale in the market, and a lesser number of buyers to buy them, the sellers tend to be nervous. You may take advantage of the situation and get your home now.
- Home sellers are ready to cut prices
When the home sellers are looking forward to cutting down prices, you have the opportunity to get the most out of your deals. It is quite clear that sellers nowadays are willing to cut down the prices of homes that are available for sale. According to the statistics, the sellers have reduced their sale prices for around 30% when compared to original listings.
According to the Altos Research, reductions in house prices is quite healthy for the overall housing market. But when you take a look at real estate statistics, you will also notice that the frequency of price cuts continue to increase along with time.
Price cuts initially started taking place back in the year 2015. However, price cuts have become quite mainstream now. We can even see how it is making records. On the other hand, home sellers have discovered that the market will not be supporting over-priced houses anymore. If you are a first-time homebuyer, you can get some amazing benefits with it.
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- New credit system would add 22 points
The credit bureaus in the United States stopped including medical collections and medical debt in the credit scoring formulas. In other words, satisfied medical collections are now eliminated out of credit reports. On the other hand, all unpaid medical collections aren’t considered as debt until they reach one year old. The outstanding medical collections under $500 will be ignored from 2023 and beyond. Hence, a typical homebuyer now will be able to make a purchase a home and add around 22 points to the credit score. This is another reason to buy a home now.
As you can see, there are some great reasons available for you to spend your money in purchasing a home now. If you are impressed, you can go ahead and start your hunt for a new home today. Don’t wait days for a pre-approval we can have you approved in minutes.