The year 2016 offers a lot of reasons and opportunities for those who are planning or interested in buying a home. Several feasible financial factors beneficial to that of the home buyer can be taken advantage of in the real estate scene for 2016.
Realtor reports that the interest rates in home loans this year are historically very low. A 30-year fixed-rate home loan has an average of 4% interest - a far cry from the interest rates back in the 1980s which went as high as 18.5%. Home investors are definitely going to enjoy the reaps of a low interest rate as they go along paying their mortgage throughout the next years.
Rents are also going up this year. This is not good news for renters, of course, but opens up the possibility of choosing a home rather than a paid space for this year. Since last year, 88% of property managers have already increased their rents, and a hike of around 8% or more is predicted for this year.
Home prices for housing are also starting to stabilize this year, offering a level playing field. This allows home buyers to bargain with sellers. Down payments are also considerably low, with offers as much as 3% for first time home buyers with credit scores as low as 620.
CNN Money, meanwhile, shares that more homes will be available in the market for this year. The slowdown in the rise of home prices will trigger owners to list their homes, offering several options to the buying market. It is also advisable to acquire a real estate property now before the Federal Reserve begins to increase its interest, which is about to happen very soon. Although buying may seem to be the more expensive option in getting a place to live, mortgages would be less painful than paying for rent with the increase of rent prices still moving up at present.
Experts are claiming that now is the right time to invest in a home with the interest still low and renting prices going up. Buyers with lower credit scores can also score a home this year with a down payment that's light on the pocket as well.
