Why Your Home Buyers Really Need to Hurry
The National Association of REALTORS predicts that the home buyers will outnumber home sellers this spring. Due to the rising trend of home prices on the market, NAR chief economist Lawrence Yun predicts that “more people will be pushed on the borderline of conventional mortgage limits and may need a large down payment or a jumbo mortgage.”
The median price for an existing single-family home in January 2016 was $213,800- higher by 8.2% from last year’s data. Home prices are moving at the highest rate since April 2015. Bob Walters, chief economist of Quicken Loans, attributes this to a decade’s worth of pent-up demand.
But in spite of the pricier tags, home buyers are still encouraged to take advantage of the market and invest in a property this spring. Keith Gumbinger, vice president of HSH.com, reveals that mortgage rates are forecasted to stay low, and you can expect your 30-year fixed-rate mortgage to stay below 4% until May this year. Because of this, the spring season is expected to be a busy one. And to avoid closing delays, buyers are advised to get into the market in the earliest possible time.
Quick Tip: If you are sure about buying a home this season, get preapproved for a loan prior to shopping around for houses. This will make you look like a better buyer and would cut down on your closing period by as much as 10 days.
To read the complete article of The Wall Street Journal about this, please click here.