You can’t blame people for being wary of purchasing a new home. After the sub-prime mortgage collapse in 2007 many prospective homeowners took a step back and put their dreams of buying a new home on hold. However, it’s been six years since the housing crisis and now the market is once again stable which means 2013 could be the year to buy.
Before you get caught up in the rush to buy a new home the first question to ask is if it makes sense for you to buy. Just because there is a great deal available doesn’t mean you should grab it. If your job is unstable or you have plans to relocate then purchasing a new home is probably not in your best interest. Take some time to go through the numbers and your personal situation to decide if a new home is right for you.
Low interest rates are definitely getting the attention of potential home buyers. According to Freddie Mac, interest rates are at their lowest in nearly three decades (current average is around 3.5%) so locking in a low rate with a fixed-rate mortgage could be the offer you need to make the decision to buy a new home. It’s uncertain if these rates will rise in the future (some estimates say it will rise to 4.5% by the end of the year) but experts agree the low rates present now won’t last forever so if the numbers look good then buying may be the right move.