Home buying tends to slow down during the holidays. So far this is not happening this year
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It is common for mortgage activity to slow down during the holidays. At this point in the year, people are usually busy making plans to celebrate the season and are less focused on going out and finding a home to buy.
But last week, the volume of mortgage applications rose 1.8% from the previous week, reports the Mortgage Bankers Association. And that leap was largely fueled by demands to buy a home, as opposed to refinance.
Should you try to buy a house during the holidays?
Buying a home during the holiday season can be a mixed bag. On the one hand, there is the challenge of juggling open days and various appointments with vacation travel plans, buying gifts and the many other tasks that come up at this time of year. .
And also, it’s not exactly the most user-friendly time of year to hunt a house from a weather point of view. In some parts of the country, snow is or soon will be on us, making it difficult to just go outside to see the houses.
On the other hand, the only advantage of trying to buy a home during the holiday season is that the competition can be less intense. This year there has been a noticeable shortage of available housing in the real estate market which has made things very difficult for potential buyers. But if a large number of buyers pause their plans to focus on the holidays instead, it could give those who persist a clear advantage.
Is this a good time to buy a house in general?
Apart from the holiday season, buying a home is now a difficult time as property values ââare extremely inflated in the United States. We can thank the aforementioned lack of inventory for this.
That said, one of the main reasons homebuyer demand has remained strong despite record home prices is that mortgage rates have been sitting at attractive levels all year round – and they still look good right now.
Granted, rates could stay low until 2022. But we don’t know exactly when they will start to climb, when we know they are currently competitive. And if you’re able to lock in a low enough interest rate on your mortgage, it could help offset the higher price you’ll pay for a home.
What’s the right call?
It is clear from the above data that buyers are always interested in buying homes regardless of the time of year. But at the end of the day, the decision to buy a home while on vacation is up to you, so think about your financial situation and what plans you have for the weeks ahead.
If pursuing a home purchase seems extremely stressful, and you are already planning to stretch your budget to buy a home, then you might want to consider waiting. The last thing you need is to feel like you’re buying a house in between vacation obligations – let alone writing a check for one. advance payment at a time when you may be spending thousands of dollars on vacation travel and giveaways.
A historic opportunity to potentially save thousands on your mortgage
There is a good chance that interest rates will not stay at multi-decade lows any longer. That’s why it’s crucial to act today, whether you want to refinance and lower your mortgage payments or are ready to pull the trigger to buy a new home.
Our expert recommends this company to find a low rate – and in fact he used them himself for refi (twice!).
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