Why 2020 Is a Great Year for Buying Your First House
Buying your first house is always exciting, but figuring out when the time is right can feel like a monumental challenge. If you buy too soon, you risk getting an overly high interest rate. If you buy too late, you could miss out on great deals and financing options. 2020 promises to be one of the best times to buy your first house. For renters looking to get out of their apartments and into homes they own, the sooner, the better. Here’s why.
Interest Rates Are Low
With the spread of COVID-19 and the downturn in the economy, the Fed lowered interest rates across the board. This means new mortgage loans have lower-than-normal interest rates which can save you money over the life of the loan. Interest rates can always change and waiting too long might mean you miss out on those low rates entirely.
More Homes Are for Sale
It’s likely that more people will be putting their homes on the market in 2020. Like you, they want to take advantage of low interest rates and are ready to move into a new house that better suits their needs. This means you’ll have more options to choose from and can find the perfect house to call your own more easily. Even better, you could end up with more negotiating power. The more homes that are on the market, the more desperate sellers will become and the more willing they’ll be to entertain offers below their asking price.
The Market Will Change
When it comes to home sales and interest rates, the only thing that’s certain is that they will change. Often, that change is rapid and if you don’t move quickly, you’ll find that buying your first house is more challenging and more expensive. If you miss the window of opportunity, you risk finding yourself in a seller’s market. When this happens, there are more buyers looking for homes than there are homes for sale. You’ll have more competition and may find it more difficult to get into the house of your dreams at a price you can afford.
Take Advantage of Low Rates Now
If you’re thinking of buying your first house this year, don’t wait. Start the process now. Apply for a mortgage loan now to lock in low interest rates before the situation changes. The sooner you do, the easier it will be to take advantage of all that 2020 has to offer.