With spring weather finally upon us you may start considering whether or not this year is a good year to buy a Knoxville home for sale. Here are some reasons why it still makes sense to buy a Knoxville home in 2015.
Mortgage Rates Are Still Low
Mortgage rates are still historically low. It expected, though, that mortgage rates will creep up towards the second half of 2015. You may think that a small increase in interest rate won’t really matter, but it can make a larger impact than you think. If rates go up by just 1%, it can reduce how much home you can afford by 11%. For example if you can afford a $250,000 loan with a four percent interest rate, your buying power would be reduced to $222,500 at a five percent mortgage. While interest rates aren’t expected to creep up a full point this year, even half a point increase can influence you’re buying power.
Home Prices Are Still Affordable
While home prices in Knoxville have slowly been on the rise, they’ve still not returned to peak levels. This year home prices are expected to increase, but at levels that are more stable and steady than in years past. With home prices not expected to rapidly increase, buying a home will still be extremely affordable.
Buying Is Still More Affordable Than Renting
In Knoxville, buying a Knoxville home is still cheaper than renting. With rent prices expected to increase in 2015, there may be many renters who finally decide to buy a Knoxville home for sale. In addition, buying a home allows you to put your monthly mortgage payment towards an investment instead of just throwing money away.