Is Now the Right Time to Buy a Home?
In the fluctuating housing market, the question “Is now a good time to buy a home?” remains in the forefront for prospective buyers.
Fannie Mae Senior Vice President and Chief Economist Doug Duncan offers a simple answer: “If at today’s interest rates and house prices they can find the house that can fit their budget, they should buy,” says Duncan. “If they’re guessing where interest rates are going to go, or where house prices are going to go, now they’re a speculator. Can they afford to be a speculator?”
Duncan cites the recent interest rate—3.82 percent as of December 21, 2015, compared with the normal 6 percent 30-year post-Depression average—as a reason to buy a home within the constraints of a well-thought-out budget.
Still, it’s important to note that now may not be the best time of year to buy a home, due to what is known as seasonal slowing—stalling market trends in part caused by the need to keep children in school at the beginning of the school year and a general slowdown as the winter holidays approach.