Home Ownership — The American Dream Lives On

Is home ownership really still part of the American dream? After the events of the recession and the bursting of the housing bubble, this is a fair question. Texas fared far better than other parts of the country, but $8 trillion dollars in home equity wealth was lost, and many families were traumatized by the loss of their home.

What You Should Know About Interest Rates
The interest rate for a 30-year fixed mortgage hit a record high of 18.45% in October 1981. This is more than 15 points higher than its all-time low of 3.31% in November 2012. On a $200,000 mortgage, that would amount to a difference of about $2,200 in a monthly mortgage payment. Today's rates are still at near-record lows. At an average of 4.2% for April 2017, a monthly payment on the same mortgage would be about $1,000.

What to Expect from a Real Estate Agent
In the competitive Texas home market, you need an advocate and a guide. A competent and experienced real estate agent knows when new homes come on the market, knows market values, and knows how to write a contract to protect your interests. You would not perform your own tooth extraction; don’t go it on your own when making the largest purchase of your life.

Why You Should Buy Your Home Now
Consider these three reasons for taking action now:

• Prices are increasing and will continue to rise. Recent reports indicate that there was a 7% increase in Austin’s prices in 2016.
• You can either build equity in your home or help your landlord build equity in his property.
• You stand to gain many benefits: tax advantages, a place for your children to grow up, the ability to renovate and decorate as you please, and the ability to “get in the game” as home prices continue to rise.

While the housing crisis did impact the desire to own, it did not have a long-term effect. The American dream of owning a home lives on.