Is Fall 2022 The Right Time To Buy A House – When Is?

Key takeaways:

• A majority of first-time buyers now have better credit scores due to UltraFICO.
• These improved credit scores give access to lower down payments, lower mortgage rates, and better home affordability.
• The lack of competition in the buyers’ market gives you more time to find a house that meets your criteria.
• The decrease in home prices is an excellent opportunity for buyers.
• Lower mortgage rates provide an opportunity for people looking to refinance their mortgage and get a lower rate for saving money each month.
• Overall, now is an excellent time to purchase a new home if you are stable financially and can afford the property’s upfront costs.

First-time buyers may agree that now is an excellent time to buy a house. According to Fannie Mae’s National Housing Survey, more than 60% of renters prefer to buy a home at the end of their lease. That’s because most renters expect rents to rise in the coming 12 months.

The market right now highly favors fall-time home buyers as mortgage rates are lower close to Labor Day. There are also fewer offers on homes for sale, and buyers have more control. Moreover, home sellers are also cutting prices after 14 days.

A majority of first-time buyers now have better credit scores. A recent change in the credit scoring added another 22 points to average US consumers, which makes homeownership even more affordable.

So, the question is, should you buy a home, especially if it’s for a specific purpose, such as retirement? Let’s discuss certain things in further detail to help you understand your options.

Reduced Competition for Homes for Sale

According to the National Association of Realtors, more homes are on sale now than in the past 12 months. These homes are up for sale at half prices compared to Spring.

The lack of competition in the buyers’ market gives you more time to find a house that meets your criteria without feeling pressured to make an offer quickly.

Unlike earlier, today’s buyers can also underbid a home and make offers that can include the necessary contingencies such as appraisal, home inspection, and mortgage. Moreover, with fewer offers on homes for sale, sellers are highly likely to negotiate.

Sellers Are Cutting Prices.

To attract buyers, sellers offer great deals and cut home prices. The decrease in home prices is an excellent opportunity for buyers looking to purchase a home in the near future. With prices falling, you’ll be able to get more houses for your money.

According to Altos Research, home sellers have lowered their asking price to about one-third of the usual. While home prices are skyrocketing in some US cities, sellers have learned that today’s real estate markets don’t support overpriced homes. The right-priced homes sell relatively quickly, and mispriced homes face challenges.

The New Credit Score System

Another reason 2022 is a good time to invest in a house is that the US credit bureaus don’t add more medical debt and collection to credit scores.

Around 30 million consumers are benefiting from medical and credit debt scores. That’s because the pandemic has left many people with no choice but to default on their debt payments.

The new credit score system from the bureaus is called “UltraFICO.” It will help boost scores for people managing their finances responsibly, even with medical debt. It means that more citizens will be able to qualify for a mortgage in 2022.

The government has also estimated that the people buying a home have 22 points higher in their credit scores. These improved credit scores give access to lower down payments, lower mortgage rates, and better home affordability.

Mortgage Rates Are Expected to Drop.

A conventional 30-year fixed rate mortgage rose by 0.76% in three weeks following the fall. This is the 15th fastest mortgage rate increase in the past 50 years and was highlighted as a difficulty for people buying a home in August.

However, the sharp increase also means the mortgage rates will fall sharply. Based on the recent trend, it is estimated that mortgage rates will decrease in early September. That provides a unique opportunity for those looking to buy a home as they can get a lower rate and a better deal on their mortgage.

The decrease in mortgage rates will present an opportunity for buyers who couldn’t enter the market due to the higher rates. Additionally, this provides an opportunity for people looking to refinance their mortgage to get a lower rate and save money each month.

The housing market is slowly but surely recovering from the 2020 crisis. The number of homes for sale has been increasing as more people are listing their homes for sale.

Buying A Home In 2022 Without Any Down Payment

2022 is shaping to be a good year for buyers looking to buy a home without any down payment. The average credit score required for a mortgage has decreased, meaning that more people will qualify for a loan.

Additionally, the down payment requirements for FHA loans have been lowered, making it easier for first-time home buyers to purchase a home. Grant programs, tax credits, and other assistance programs have helped first-time buyers achieve homeownership.

Why Shouldn’t You Delay Homeownership Any Further?

Mortgage rates are still quite low in historical trends, making this an ideal time to buy a home. House prices have been gradually increasing over the past few years, but they are still below the peak prices in recent years. There is still room for price appreciation, making now an excellent time to buy a house before prices rise.

The competition is also lower from other buyers now, as many people are delaying their homeownership plans. This could mean that you have more negotiating power regarding price and terms.

Cons Of Buying a Home In 2022

While mortgage rates are still at their lowest, they are expected to rise in the next few years as the economy recovers. This could make your monthly payments higher and put a strain on your budget.

Also, with home prices on the rise, you may not be able to find the same deals on properties that were available a few years ago. You may have to pay more for your dream home than you would have just a few years ago.

Down payments are another significant factor to consider when buying a home. Most lenders require a down payment of at least 10% of the purchase price. With home prices on the rise, this could mean that you have to come up with a hefty sum of money for the down payment.

While many lenders offer low or no down payment options, this could mean that you pay more interest over the time of the loan. A larger down payment could help you save money in the long run if you can afford it.

Your credit score is another essential factor to consider when buying a home. Most lenders use your credit score to determine whether you qualify for a loan and what interest rate you will be offered.

Here are three reasons mortgage protection is essential for your new home.

So, if you’re thinking about buying a house in 2022, don’t wait any longer! Now is an excellent time to purchase a new home if you are stable financially and can afford the upfront costs.

Family First Life – Strong Tower & Hammer Lane Consultants offers reliable retirement plans, insurance plans, and safe money investments for senior citizens, truckers, and homeowners in Chico, TX.

Give us a call to learn more about retirement planning and asset protection!

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