Do you feel like you’re the only person who is missing the best time to buy a home? When you begin to think about when is the “right time,” remember, it is an individual decision. While economic factors such as interest rates are a consideration, it turns out that lifestyle factors for most people are higher in priority than financial considerations. A recent report revealed that lifestyle factors are the most important reason listed as why people were interested in buying a home.

Lifestyle Factors

A 2014 analysis of a National Housing Survey found that lifestyle factors were the major reason people gave when asked why they wanted to buy a home. These factors centered on their children, safety, space and control.

 

The top responses on why people wanted to buy a home were:

  • Having a good place to raise children and provide them with a good education.
  • Owning a physical structure where they feel safe.
  • Allowing more space for their family.
  • Having control over the living space, i.e. the ability to do renovations and updates.

 

Lifestyle factors may lead the home buying decision, but economic factors such as trends in the housing market and mortgage rates are also significant decision points.

Economic Factors

Trying to time your purchase to the lowest interest rate, or lowest home price, can be difficult especially given that what is going on in your life tends to drive the decision. To help you, there are many experts and resources for information on housing and mortgage trends that can help you with the financial decision. Every quarter, Pulsenomics surveys a nationwide panel of over one hundred economists, real estate experts, and investment and market strategists about where home prices are headed over the next five years. They then compile the projections of all 100+ experts.

 

The latest projections are:

  • The national average of home values will appreciate by 4% in 2015. Many areas will see higher appreciation rates.
  • The national average of cumulative home appreciation will be 23.5% by 2019. Many areas will see higher appreciation rates.
  • The most conservative members of the panel still are projecting a cumulative housing appreciation of over 15.1% by 2019.

Where are Mortgage Interest Rates Headed?

A buyer must be concerned about more than just prices. The long term cost of a home can be dramatically impacted by a large increase in mortgage rates. The Mortgage Bankers Association (MBA), the National Association of Realtors, Fannie Mae and Freddie Mac have all projected that mortgage interest rates will be relatively stable, increasing only by approximately one full percentage point over the next twelve months.

 

Bottom Line

Remember, only you can know the right time to purchase a home. To put your mind at ease, begin to pay attention to real estate reports in the media, weighing the pros and cons of each point of view. Find a trusted mortgage and real estate professional to advise you on the local market, particularly for the areas or neighborhoods you’re most interested in. Contact us at 1-800-376-4603 for a recommended real estate professional or to chat about finding a mortgage program that fits your financial situation and your lifestyle. If you follow this advice, you won’t have to worry that you have missed the best time to buy. The Advantage Way, your Employer Approved Homeownership Program.