<center>The Stages of House Purchasing Preparedness</center><br><center><a href="http://figure8re.com"><img src="http://i.imgur.com/wkF55FE.jpg" title="Figure 8 Real Estate Group" /></a></center><br>The majority of purchasers go through specific stages of readiness along the course to acquiring a home. The first stage is personal preparedness. This is when purchasers weigh their choices and decide if they are, in fact, ready to buy a residence-- economically, emotionally, and otherwise.<br><br>Typical questions during the first stage include: Do I make sufficient money to cover the monthly home mortgage payment? Can I manage a down payment? Will I be staying put for a while, or moving again in a couple of years? Am I prepared for the concerns associated with homeownership? Or am I much better off leasing at this stage in my life?<br><br>When a person has actually finished all of this soul browsing and decided in favor of buying, she or he moves into the next phase of readiness. Now the concern ends up being, should I purchase now or wait to see what the marketplace does? This appears to be where you are right now. Should you purchase a house now or wait up until 2015? And if you do wait, will you be better or worse off when you lastly purchase? Let's peel away the layers ...<br><br>Buy Now or Wait Till 2015?<br><center><a href="http://figure8re.com"><img src="http://i.imgur.com/jeBh0PA.jpg" title="The Best Realtors in Silver Lake" /></a></center><br>In the second stage of preparedness, it's all about market timing and trying to obtain the best deal on a house. You want to get when house prices and home mortgage rates are fairly low, or at least prior to they increase any further. The trouble is that the rock-bottom costs and interest rates lag us. So you would probably need a time device to get a much better deal than what you might get today.<br><br>However what about next year? Could you conserve cash by postponing your purchase until 2015? On the rates side, a lot depends upon where you live. Home rates are regional in nature. Some regional realty markets are appreciating swiftly at the moment (like numerous in California), while other markets are sputtering along with just 1 % or 2 % annual gains. Others are flat or even decreasing.<br><br>So we need to be careful of making broad generalizations about exactly what "the" U.S. housing market will perform in 2015. In reality, there isn't really one national housing market, however hundreds of micro-markets. So you need to learn what's taking place in your neck of the woods, and exactly what is expected to take place over the coming months and years.<br><br>No one has a crystal ball. But there are lots of educated guesses out there, and they can assist you make a better-informed decision. This will certainly help you choose whether to buy a house now, or wait up until 2015.<br><br><center><object width="475" height="297"><param value="http://www.youtube.com/v/xp5BMneWkrw&showsearch=0&rel=0&fs=1&autoplay=0&amp;ap=%2526fmt%3D22" name="movie" /><param value="window" name="wmode" /><param value="true" name="allowFullScreen" /><embed width="475" height="297" wmode="window" allowfullscreen="true" type="application/x-shockwave-flash" src="http://www.youtube.com/v/xp5BMneWkrw&showsearch=0&fs=1&rel=0&autoplay=0&amp;ap=%2526fmt%3D22"></embed></object><br /><a href="http://www.youtube.com/watch?v=xp5BMneWkrw&fmt=22" target="_blank"></a></center><br><br>Will Mortgage Rates Increase Next Year?<br><br>Ask ten economists if home loan rates will be higher at the end of 2015 than they are right now, and a minimum of nine of them will certainly say yes. Maybe all 10. The general agreement among housing experts is that rates will increase progressively over the coming months. I blogged about this a number of weeks ago (see our pack of predictions for 2015).<br><br>The most affordable rates of all time took place in 2012. In November of that year, the average rate for a 30-year set mortgage (FRM) was up to an incredibly low 3.31 %. Do not anticipate it to be that low once again anytime quickly. The current average at the time of publication was 4.23 %, and it's expected to increase further in 2015.<br><br>We just came out of a three-month duration of unusual rate stability, as you can see in the chart below. You'll observe the reasonably flat line on the right side of the chart, in between June and September of this year. Rates altered very little throughout that duration. This week, nevertheless, the 30-year average increased 11 basis points (0.11 %) from 4.12 % to 4.23 %.<br><center><a href="http://figure8re.com"><img src="http://i.imgur.com/bOQnKtQ.jpg" title="Top Rated LA Real Estate Pros" /></a></center><br>Bottom line: Most economists anticipate to see a steady rise in rates between now and completion of 2015, with the 30-year typical ending the year somewhere between 5.5 % and 6.0 %.<br><br>Simply remember that loan pricing can vary a fair bit from one week to the next, despite the fact that the general trend might be upward or downward. In the chart above, you'll discover that rates are presently lower than this time in 2013. But they also increased at the start of 2014. So there are "micro-trends" and variations, even though the annual trend might be up or down.<br><br>As a house purchaser, you can not really "time the market" from one week or month to the next. The best you can do is study the yearly projections for lending rates and local home costs, and make a notified choice based on that.<br><br>What About U.S. Home Costs?<br><br>When choosing whether to get a residence now or in 2015, you must also consider regional rates trends. "Regional" is the keyword there. House values in many U.S. cities have increased over the in 2013, and will likely remain to increase over the coming months. However there are still pockets of depreciation here and there.<br><br>As I wrote earlier this month, economists have anticipated a basic "cool-down" in home values. They anticipate them to keep increasing through 2015, however not as much as they increased over the last year or so. But we're talking about the national trend here. Things get a lot more diverse, and less foreseeable, when you drill down to the city and metro level.<br><br>If present market conditions and trends are any sign, house rates will likely increase most in California and the Southwest over the coming months. More moderate gains can be anticipated throughout much of the nation. Some cities in New England and the Midwest might in fact see decreasing values through this time next year. The interest rate forecasts mentioned above more or less apply to the entire country. But price projections are local in nature. They vary from one housing market to the next.<br><br>So, should you buy a home now or in 2015? This is an individualized question that can not be answered across the board. But based on the general consensus among housing analysts and economists, it seems the postponing a purchase till later on in 2015 could be pricey. You could wind up paying a greater home loan rate, in addition to a greater cost for your home. But again, the latter will depend on your regional housing market. So make certain to do a lot of marketing research at the regional level.<br><br> <a href="http://www.figure8re.com">see this here</a>