Keep these things on your radar before jumping in.
1. Inventory is still extremely limited
You may also find yourself stuck in a series of bidding wars when other buyers try going after the same properties you’re interested in, which can be both frustrating and stressful.
2. Home prices are still high
In April, home prices saw a 14.6% gain compared to the previous April. If you attempt to buy a home this summer, you’ll probably end up paying a lot more for it than you normally would. That means you’ll need to bring a higher down payment to the table, and you’ll need to take out a larger mortgage.
3. Mortgage rates remain competitive
Though home prices may be inflated, today’s mortgage rates are low enough to help offset them. If you have a higher credit score — one in the mid-700s or above — you’re more likely to qualify for the best rates in your neck of the woods. And if not, you may want to work on boosting your credit before you apply for a home loan.
4. You may have less competition during the fall
Even if inventory levels stay low, you might still have less competition once families get caught up in the school year or choose to pause their searches so they don’t have to uproot their kids.
Buying a home this summer may not be the smoothest process due to the state of the market, but that doesn’t mean you won’t be successful. The key, either way, is to know what type of housing market and environment you’re getting into.
A historic opportunity to potentially save thousands on your mortgage
Chances are, interest rates won’t stay put at multi-decade lows. That’s why taking action today is crucial, whether you’re wanting to refinance and cut your mortgage payment or you’re ready to pull the trigger on a new home purchase.
(Excerpt from The Motley Fool)