Is 2021 a Good Time to Buy a Home?
Buyer demand increased in 2020 as low mortgage rates made homeownership more affordable and appealing. But if you missed the boat in 2020, is 2021 a good time to buy a home? Here’s why it potentially is — and isn’t — a good idea.
Pros of buying a home in 2021
The primary benefit of buying in 2021? You’re likely to snag a low interest rate on your mortgage. And the lower your mortgage rate, the less you’ll pay on your home loan each month.
While rates may continue to climb during 2021, they’re unlikely to spike in the near term. The Federal Reserve has pledged to keep interest rates low through next year, though rates may rise in 2023.
The Fed doesn’t set mortgage rates, but its policies tend to influence how mortgage rates trend. If the Fed keeps interest rates low, there’s a good chance mortgage rates will stay low for at least another year, if not longer.
How have rates changed through 2021 (so far)?
Here’s a play-by-play of what mortgages rates looked like in 2021:
- January: Mortgage rates were close to historic lows
- February to early April: Rates climbed steadily
- Late April to early June: Rates dropped before coming back up slightly
- Late June through July: Rates went back and forth, and at one point they got close to 2020’s lows
- End of August: Rates creeped back up
- Throughout September: Rates stayed low
Buying a home at the wrong time is a mistake that could haunt you for years.
Should you buy a home in 2021?
Mortgage rates and housing market conditions aren’t the only factors to consider. Whether you should buy a home in 2021 also depends on your personal financial picture.
You’re in a strong position to buy a home if you have:
- A steady job
- A down payment saved up
- A great credit score
- Low levels of debt
You’ll just need to shop around to find the best mortgage lender for you.
But if you’re not in such a strong position, it could pay to postpone your home search.
Perhaps you’re worried about getting laid off at work, or you don’t have much money set aside for a home purchase. Or maybe you have a lot of debt, or your credit score needs work. It may make sense to wait even if home prices come down at the end of 2021, inventory opens up, and mortgage rates remain competitive.
Source: https://www.fool.com/
…Let us join your journey of getting your dream house!
Call now:(617) 201-9188 Ana Roque |209 West Central Street, Natick, MA
Ana Roque is a Brazilian Licensed Realtor at Re-Connect, LLC with 16+ years of experience in the Real Estate industry.
Ana speaks 3 languages (Portuguese, English, Spanish), Wife, Stepmom, Journalist, Event Director for the National Association of Hispanic Real Estate Professionals (NAHREP) Central MA Chapter.
Related posts:
Related posts:
What are the pros and cons of buying a foreclosure home? Buying a foreclosure home can have both advantages and disadvantages. Here are some pros and...March 29, 2023
What is the sellers main responsibility at closing? At closing, the seller's main responsibility is to transfer ownership of the property to the buye...March 22, 2023
Hire a realtor to buy a house is the best way! Hiring a realtor to buy a house can be beneficial for several reasons. Here are some of the key reason...March 17, 2023
What are the steps to buy a house in US? Buying a house in the US involves several steps. Here are some general steps to give you an idea of ...March 15, 2023
Housing Eviction - All You Need to Know Housing eviction is a legal process in which a landlord removes a tenant from a rental property. This...March 10, 2023
Whats is disclosures when you buy a home? Disclosures when you buy a home refer to the legal requirement for home sellers to provide potentia...March 8, 2023
7 Tips for Buying Your Very First Investment House: If you're considering buying your very first investment house, here are some tips to...March 3, 2023
1- What happens to your mortgage when you die? When a person with a mortgage dies, the mortgage does not automatically disappear. Ins...March 1, 2023
Fix and flip houses is a popular investment strategy in the real estate industry. Here are some benefits to consider: Potential for Pro...February 23, 2023
10 Tips for First-Time Home Buyers. Like many businesses, the real estate market took quite a hit at the beginning of the COVID-19 pandemic. H...February 20, 2023
Buying a house: A down payment of less than 20% will add PMI. Down payments & PMI: Typically, buyers put down 5 to 20%...February 17, 2023
Why Massachusetts is considered a great place to live. Is Massachusetts is a great place to live for many reasons, incl...February 14, 2023
When to Get Homeowners Insurance When Buying a House. Buying a new house is exciting, whether you’re a first-time buyer or an experienced...February 10, 2023
Buying a House With Credit Card Debt. Yes, it is absolutely possible to buy a house with credit card debt. And by lowering your debt-to-i...February 8, 2023