What to know about the upcoming housing market shift if you are on the buying side of the equation.
The drop in mortgage rates has slightly increased activity in mortgage applications. Home buyers wade back into housing market as mortgage rates fall for fifth week in a row (msn.com). If you are looking to make a change in residences, prepare yourself for the possibility in advance of the interest rate cut. What to know and what to consider can be researched now so you are ready to purchase.
Interest Rate Cut
With an interest rate change on the horizon, many young couples who have been deferring a home purchase may change their course. Will they see this as an opportunity to jump back into the housing market? A recent article published by Realtor.com explains how to approach the current housing market. Homebuyers Gear Up for a Mortgage Rate Drop This Fall: What To Know as the Housing Market Shifts (realtor.com)
If the Federal Reserve were to cut interest rates, sitting out of the housing market or delaying a home purchase may no longer be the homebuyer’s choice. Here is a summary of what to be thinking about before making this big decision. A quick prep list of items to talk through is provided.
Items to Discuss
- Determine your budget
- Get pre-approved for a mortgage
- Call around and find yourself a real estate agent
- Make a list of must have features for this home versus wanted features
- Research potential locations and school districts
- Understand all the costs of home ownership – down payment, insurance, closing costs, property taxes, local services, and annual maintenance costs
- Stay flexible and patient
Still Have Questions
Before making the final plunge be sure to have a solid game plan in place that you are comfortable and confident executing for the long-term. Remember this is a 25- or 30-year mortgage you will be paying. This is likely to be the largest expenditure of your lifetime. As your family grows, so will your financial responsibilities and decisions. Plan it out and continue to solidify your foundation.
One of WPC’s core commitments is to guide the next generation in making good financial decisions at every stage. Each situation is unique and if you need more clarity, please do not hesitate to contact us. Our goal is for you to make confident financial decisions.
If you would like to work with a Nex Gen Advisor, Tim Dougherty, CFP® and Noah Sayre, CFP® are available to discuss your financial situation. Read more about our services and approach on our website at www.wealthp.com
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