Eleven months may sound like a long – or short – period of time to you, but when it comes to buying a MN home, it’s a pretty good number. The Chief Economist for mortgage guarantor Fannie Mae has some interesting news that should get renters’ attention: Doug Duncan believes “…mortgage rates will edge up only gradually, ending the year around 4.2%.” If this prediction proves true, that gives people almost an entire year to get in position to buy a MN home and still take advantage of interest rates that will most likely not be this low again in their adult lifetimes.
This is an important message that can have huge, long-term positive impact on the financial future of people who take advantage of this low interest rate opportunity. Most industry professionals and experts agree that it’s unlikely interest rates or home prices will go down, so the old phrase “buy low, sell high” applies to today’s market climate.
Let’s make sure the public knows the benefits of homeownership and how it’s key to how most Americans build worth and wealth. I think it’s also important to educate consumers about the fact that the home buying process isn’t confined to just a month or two. We know that people should talk with a lending professional to make a plan to get ready to buy, but the public doesn’t realize that getting qualified can be a process involving different steps over a few months rather than a yes or no answer at a single point in time. We’ve got eleven whole months to get people in position to become homeowners – let’s do this!