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In buyer's market, the sooner the better

March 4, 2011 - The spring buying season is nearly here, and families around the country are beginning to weigh their relocation options. One source says buyers need to recognize the changing rules for the real estate market.

While a number of U.S. consumers have been content to rest on their laurels and wait out the best deal in today's buyer's market, Zillow.com says the climate of the housing market is quickly changing. Most experts can't agree on when home prices will begin rising again, so consumers should not take a gamble that values will fall much lower, the source says. Additionally, mortgage rates have already begun to rebound, so consumers would be wise to quit while they're ahead and find an affordable home they're comfortable moving to sooner rather than later.

In addition, the source notes that standards for what makes a mortgage affordable are changing. Previously, families might be recommended to only put 30 percent of their monthly income toward a home loan, but some experts suggest only paying 25 percent. Ultimately, families should assess their personal financial situation and ensure only a comfortable portion of their monthly income goes toward housing costs.

While mortgage rates are expected to rise overall this year, they've fallen for three consecutive weeks. According to Freddie Mac, the average interest on a 30-year fixed-rate mortgage is 4.87 percent.
 

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