Top Reasons to buy a house before 2014

The rates for mortgages are still at their very lowest in history. The average rate home owners are getting for a 30-year fixed rate loan is 4.5%. Although this is slightly more than 1% that we saw at the end of 2013, it is still a very good mortgage rate. And with such a low rate, they have nowhere to go but up. And that is most likely what will start to happen in 2014. Some predict the rate will jump to around 5.5 to 6 percent.
Not only are interest rates set to climb, but the price of homes are on the rise as well. In May of 2013 home values across the U.S. had increased by 12.1 percent from the previous year. Its very likely to assume another similar increase will be the result once May 2014 hits. Take a look these figures: If you purchased a home for $300,000 at a 4.40 interest rate today, you would have a monthly payment of $1,502. But, if home values increased by 10 percent, that same house would cost $330,000. And if at the same time interest rates went up to 5.40 percent, the monthly payment would be $1,853. $1,853-$1,502/$1,853=0.189. That’s a 19 percent increase in your monthly payment!
Even though the cost of buying a house can be in the 5 and 6 digits, it is still cheaper to buy than rent. With today’s mortgage rates and the housing costs, monthly mortgage payments average out to around 40% less than payments for a rental property in the top 100 largest metropolitan cities.
Right now there is less competition from investors looking to buy and flip houses. Investors cannot move as quickly as they previously did. With housing prices being affordable to so many first time home owners, the market favors in their direction with programs such as FHA loans. And in some markets the housing price is increasing, making house flipping less attractive for investors. This gives home buyers more inventory to choose from, more time to close a deal, and less pressure to make high offers on homes.
Aside from the advantages of living in the home that you own, buying a house is an Investment into your future and can start to build equity for you and your family. Even if you sell your home several years later, you can still profit from the sale in many ways. Owning a home can also protect yourself from inflation. By locking yourself into a 30-year fixed rate mortgage, no matter what happens to the economy, you know you’re monthly payment for housing stays the same. Experts predict an inflation of 2 to 3 percent in the next few years. This essentially means everything will cost more.