Buy Your Home in 2013 - Don't Wait

By Kiernan Brown Updated on 9/27/2013

If you have been looking to buy a home or have just been thinking about buying a home, now is the time.  In the last six months we have seen rates skyrocket above 5% for some loan programs, and then settle back down to about 4.5% to 4.75% on 30 year fixed rate mortgages.  Last week the FED decided not to "Taper" and we have seen rates move a to as low as 4.25%% on a 30 year fixed rate mortgage.  We have seen 3 year rate highs and are currently in a temporary "New Low".  Rates will move back up and Tapering will begin the end of this year.  When this happens rates will spike again.

Buying or refinancing a home before rates go up, can save you hundreds of dollars a month, thousands a year, and tens of thousands over the life of your loan.  A lower rate is just one reason to buy or refinance now.  The Consumer Financial Protection Bureau (CFPB) has a number of changes that will effect your ability to qualify for the home you want.  When you combine these new rules with other new un-tested regulations, many lenders will scrutinize each mortgage loan application even more than the high level of scrutiny, that is currently in place.  The Dodd Frank Rules that are yet to be tested in a court of law, and the upcoming CFPB changes will only add more uncertainty to how lenders will be treated in the event of a violation of new rules and/or a foreclosed mortgage.

The new rules are being put in place to keep borrowers from being taken advantage of, and that is good. However, there are many qualified borrowers that will be regulated out of homeownership because of the upcoming changes.  I will write more about the upcoming changes in a later article.  Your best opportunity and time to buy, is NOW.  Don't make a hasty decision, but you may want to increase your efforts to buy or refinance.  The rates will be lower and the ability to qualify will be easier  until the end of this year.