Is this the Right Time to Get an NJ Home Mortgage?

If the housing crisis has done anything, it’s has most definitely created a buyer’s market. Low NJ home mortgage rates and diminishing home values make the reality of homeownership not only extremely tempting but affordable as well. But does that mean you should buy a home right now? There are a few factors to consider when answering this question, but probably most important is whom you are seeking council from, where do you live, and what is your personal financial situation.

Has the Housing Market Reached Bottom?

That’s a difficult question to answer and only the clarity of hindsight will provide the truth. However, it’s hard to argue that the housing market is not at the very least reasonably priced, at least compared to the years of the housing bubble. The National Association of Realtors has stated that prices are low and interest rates on NJ home mortgage are lingering at historic lows, so in terms of affordability now certainly is a good time to buy. But there is no doubt that real estate is highly dependent on locality. So the best advise anyone can give you is to speak to a reputable NJ mortgage consultant who knows and understand the intricacies of your local market.

A national leader in the industry, Fannie Mae, recently predicted that national home prices would continue to decline during the next few months only to even out towards the end of the year. Some other industry leaders are not so hopeful projecting a housing recovery is more likely in 2014.

What’s Going to Happen to NJ Home Mortgage Rates?

So taking the aforementioned advise of the experts into consideration, you should buy a home between the years of 2012 and 2014. As if it was that easy. Certainly your personal situations is going to drive your decision making regardless of when the experts believe the housing market will rebound, but one thing that real estate experts do tend to agree on is that it is unlikely that NJ home mortgage rates will remain low for an extended period of time.

In fact, the chance that NJ home mortgage rates could and will go up is way higher than the chances of them dropping any lower. Just to give perspective, according to the Bankrate’s Weekly Mortgage Rate Survey, the interest rate on a 30-year fixed mortgage reached a record low of 4.42% in November 2010. The record high was approximately 18% in 1981. And recently, the Mortgage Bankers Association has projected to be close to 6% by the end of 2012.

Bottom line: If rates rise when you enter the market, even if home prices continue to decline – you could actually end up paying more for your house. So if you’re basing your decision on today – then it is the right time to purchase a house and a NJ home mortgage since prices and rates are down. But the real question you need to ask yourself is not if this is the right to buy a house, but are you personally ready to buy. The best thing to do is assess your personal situation: where do you want to be in five or ten years, is your job stable, are your finances in order? A reputable NJ mortgage consultant can help you answer these questions.