The factors that people use to determine when they are ready to buy a home are probably as varied as people themselves. But there are two factors that are prominant in making this decision:
- Family situation – new baby, new marriage, new job, retirement
- Financial situation – savings for downpayment, paid off student loans, inheritance
I’d like to suggest that potential buyers consider a third factor – mortgage rates. While there is no magic crystal ball, economists can use historical data and economic data to predict how mortgage rates will change.
Most economists predict that mortgage rates will be about one point higher in 2016 than they are in 2015. How does that affect your buying power?
Waiting to buy your home until 2016 will cost about $59 more per month or $21,260 more over the lifetime of the loan compared to buying a home today.
So what are you waiting for?