The real estate news in Mississauga recently has been entirely about mortgage and interest rates going up while values of real estate holdings going down. Prospective homeowners want to know if they should buy now, even if rates are headed up, or if they should wait until things normalize a little. These valid questions are frequently asked among prospective homeowners. Here is our answer:
First, it's important to know that interest rates and real estate values fluctuate all the time. You can start by checking the latest
mortgage rates in Mississauga The economy moves through cyclical periods of growth and decline and interest rates and real estate values move with it, relatively predictably.
Second, we believe that interest rates are going to continue to rise for the next few years – slowly and steadily – as the economy improves from where it was. Rising rates are a normal part of an improving economy.
Third, it's important to note that real estate values are based on supply and demand. Right now, there is a lot of supply because people aren't buying due to recessionary pressures and financial skepticism. This will change. As the economy improves, demand will rise, supply will diminish, and values will improve. This could take a few years.
Fourth, it's critical to realize that no one can time the market. Timing the market is always a losing proposition even thought it seems like an attractive thing to do. Smart investors will never time the market. They get in or get out based on the best information they have now, not what they think is going to happen later. If someone is avoiding the market because rates are rising but values are diminishing, it works the other way around as well: Interest rates could diminish unexpectedly and real estate values could rise quickly, and that will make the market seem unattractive, too.
Fifth, owning a home is about more than just the mortgage. The value of a home is all about owning a valuable asset that is your own. It's a piece of security you can borrow against. It's an investment you can paint and carpet and landscape to have a direct impact on its value. Compare this to renting where payments made each month simply pay the landlord for the privilege of borrowing.
With these points in mind, it becomes much clearer that owning a home is better and buying a home now is better than waiting and paying rent for months or years while you wait for the market to do what you want it to.
Getting a mortgage in this kind of economic environment (rising rates, diminishing real estate values) doesn't necessarily have to be the oppressive loans that prospective homeowners think they might be. By using a
Mississauga mortgage broker, homeowners can shop around for a
mortgage that will work for their situation and derive great value out of their mortgage and their new home regardless of rates and values.