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How you can Know When you should Buy a House

Families which have imagined becoming homeowners and have wondered when you should purchase a house have found this could be the perfect time. Mortgage companies are offering favorable terms on properties which are undervalued. Buying a house has got easier too, with banks seeing a rise in mortgage applications. And, with predictions of market recovery, a home purchased right now may see a great return on investment.

Housing costs are over fifty percent what they have been in the last decade. Experts predict a recovery within the real estate market. So when the marketplace bounces back, prices will rise quickly. If there is ever a period to purchase a house, this would be it. Interest rates as also low right now as well.

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Obviously, it all depends on location. The nation's Association of Realtors are convinced that homes in some regions of the U.S. are depreciating a lot more compared to other areas. It is usually time to purchase a house in places such as the Miami-Fort Lauderdale area where prices are down about 20 percent, but not a lot in places like Buffalo-Niagara Falls in which the prices have increased 10.8 percent.

Some projections state that this trend continues and home prices continues to fall until the end of 2012. Others say the market continues to remain down until 2014. Even with this uncertainty, when to buy a house also depends on home loan rates, which aren't expected to stay this low for too long. In fact, the Mortgage Bankers Association forecasts mortgage rates will be near to 6 % towards the end of 2012. So from the lending standpoint, this may be the optimal time for you to buy.

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Additional factors should be thought about as you decide when you should purchase a house. Do you plan to stay in the same geographic area for the next 3-5 years to be able to get a good return on your investment if you want to sell? Do you have a secure job? The average family pays 12% of their monthly income in mortgage payments. And, the downward economy had led to rising rent costs due to a record occupancy rate in apartment complexes. The cost of rent are expected to climb 3-4.5% this season. In some parts of the country, rents are greater than monthly mortgage payments. In those cases, it's simpler to determine if when to buy a house is now.