Listen carefully to your trusted real estate agent’s advice; NOW is the right time to buy your Pittsburgh home!
It is no secret we have been in one of the most unprecedented real estate markets Pittsburgh has experienced. Houses are selling fast, and buyers have had to compete with multiple offers. It can be difficult and frustrating, but I believe it is the right time to buy.
Here are three reasons this is the right time to buy your Pittsburgh home.
1. Mortgage rates are going to increase.
Mortgage rates have been historically low. However, mortgage rates increased in January, and projections expect them to rise. The factors that are fueling those predictions are high inflation, Federal policy changes, and the dwindling impact of the pandemic.
Industry news is showing predictions from many in the banking and real estate industry who agree that the mortgage interest rates will increase during 2022. Of course, these industry insiders don’t have a crystal ball to see the future, but they study the market and the indicators.
Some factors that they are watching are the current inflation rates, the dwindling effects of the pandemic, and the Federal Reserve’s announcement that the economy is healthy enough and needs a tighter monetary policy.
2. Monthly mortgage costs will increase as the interest rate increases.
As the interest rate rises, it will cost you more per month for your mortgage payment.
Let’s take a look at the difference if you were able to purchase a $300,000 home with a 30-year fixed-rate mortgage at 3% vs. 4%.
Monthly principle and interest payment – 3% $1,265.00
Monthly principle and interest payment – 4% $1,432.00
That is a difference of $167.00 per month. So over the life of the loan, you will be paying over $60,000.00 more for the same home. That is significant!
When mortgage interest rates increase, the price of the home you can purchase will also be affected. This is because the maximum sales price you qualify for will reduce as the interest rate increases.
3. The American Dream
Owning a home has long been held as the American Dream. I see the joy on my client’s faces when I hand them the key to their new home! A permanent place to call home gives you a sense of stability and belonging to the community. The pride of ownership is evident as you drive through some of your favorite Pittsburgh neighborhoods. Purchasing a home could be the most significant investment you make, where you can build equity that you can leverage if needed. There are certain tax deductions that you may also be able to take advantage of when you own a home.
With over 18 years of experience in the local Pittsburgh real estate market, I have the experience to help a home buyer succeed in a competitive market. I believe that now is a good time to buy your Pittsburgh home.
Understanding the home buying process, the decisions you will need to make when you place an offer, and how to negotiate are topics I cover with my home buyers in the free consultation I offer.
Contact me by phone at 412-848-3907 or email at Kim.Esposito1@pittsburghmoves.com to schedule a free consultation to discuss your real estate needs.