While many economists predicted that mortgage rates were going to go up this time of year, they've actually dropped to record lows. According to Freddie Mac, 30-year fixed-rate mortgages are currently hovering around 3.5%, and 15-year mortgages are just shy of 3%. That makes borrowed money a very economical option for homebuyers right now -- and the perfect time to buy a home.
Predictions by most housing economists say that mortgage rates will likely remain below 4% -- at least for the time being. Of course, the low rates won't last forever. So, if you're toying with the idea of investing in the house of your dreams, here are two ways to make it happen sooner rather than later:
Sell your current home now
Selling your home now puts you in a better purchasing position when it comes time to buy your new place. According to Realtor.com, the inventory of homes for sale in the U.S. went down 14% in January. That's the lowest level since 2012. With it being such a strong seller's market, your current home is likely to sell fast. That's especially true if you are working with a top-notch real estate agent. What's more, once your existing home is sold, your offer on a new home will be more likely to get the seller's attention. Why? Because, unlike most others, your offer won't be contingent upon the sale of the house you're living in now. This scenario puts you as a front-runner in bidding wars and will help give you first dibs on a home you love.
Buy a new house now
We know this sounds like a poor strategy, but it's not. As mentioned above, we're in a strong seller's market, and your current home should sell quickly. Also, home prices are rising faster than mortgage rates are dropping -- so if you happen to find your dream house now, go ahead and buy it. With buyer demand being so high and the housing supply being so low, the home you love could be less affordable in the near future. Buy now, then price your current home appropriately to get it sold right away. Another advantage of immediately purchasing a new house is that you won't find yourself without a place to live. With home inventory being so low, selling your current home first (as mentioned in the first scenario) could potentially put you and your family in that unlucky position.
Don't wait any longer. Now is the time to benefit from the record-low interest rates on mortgages. If not already, determine your ideal community, then take a look at its current home inventory. You never know, you may discover that your dream home is within easy reach.
While you're at it, add Harbor Club to your list of potential places to live. As an award-winning, Southern Living-inspired, golf and lake community, you won't want to miss out on our current real estate offerings. Here, we'll not only introduce you to a fantastic new home but an exceptional, resort-like lifestyle. Contact us today to schedule your exclusive tour.