Reasons to Buy Before 2014
#1 Interest Rates are still low, but they will rise again
Unfortunately, with interest rates as good as they are, they have only once place to go. UP. The average rate for a 30-year fixed rate loan is 4.5%. While this is a 1.15 percent increase from the historic low of 3.35 percent at the end of 2012, taking the next step to buying a house before the end of the year will save you money in the long run. Take advantage of the rates while they are still as slow as they are.
#2 Homes are still affordable, but prices are rising
Home prices are relatively low. Housing price trends vary significantly by location and even by neighborhood, but the average housing price trends across the country look promising for prospective homebuyers. The S&P/Case-Shiller composite index of 20 metropolitan areas increased only 1 percent this past season, so 2013 could still be a great time to buy.
#3 Still cheaper to buy than rent
If you live in a metropolitan area, it may make more financial sense to buy a home than rent a house, condo or apartment. According to a 2012 Trulia Trends study, buying a home is 44 percent cheaper than renting in the 100 largest metro areas in the United States.
#4 Could be easier to get a mortgage
Credit unions and banks may be making it easier for some prospective buyers to qualify for a mortgage. Less stringent requirements and qualifying criteria may help some people finally get that home loan. If you have good credit and some savings available for a down payment, you might just be able to get a loan for your dream home this year.
#5 Think to the future
Buying a home gives you a chance to start building equity, and you are investing in your future. Even if you end up selling your home in five or 10 years, you could profit from the sale and invest that money elsewhere. If you've been dealing with rising rent or the hassles of costly moves for the past few years, settling in to a home can stabilize your housing expenses – especially if you get a fixed-rate loan at a great rate. You won't have to worry about your monthly housing expenses changing significantly for a few years, and you will pay for something that has more value than a rental property. Consider the benefits of making this type of contribution to your future month after month.