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If you think moving in the winter means an even more hectic holiday season, you need to think again! Here are a few reasons why winter in general, and this one in particular, is a smart time to buy a house. (Image: Getty Images)

Why winter is actually the best time to buy a house

If you think moving in the winter means an even more hectic holiday season, you need to think again! Here are a few reasons why winter in general, and this one in particular, is a smart time to buy a house.

Motivated sellers

Because so many buyers aren’t eager to buy as temperatures drop, sellers are more motivated. That means buyers can find attractive deals and win concessions they might not be able to secure in warmer months.

A study from Zillow found that homes sold for $3,100 less than average when they were listed in the second half of December. Even properties listed in the second half of October sold for $1,600 less than average. The takeaway is that you could save a couple thousand by buying now.

Market conditions

Current market conditions make this winter a particularly smart time to shop. As the housing market has recovered from its 2008 collapse, prices have been going up. Though no one knows what the future holds, current projections estimate that the median home value will continue to rise and should increase by 3.1% by August of next year. The sooner you buy, the more likely you are to avoid a price point that reflects these projected increases.

Interest rates

While interest rates on mortgage loans have remained low for much of the year, experts foresee increases in the future. Because inflation rates are approaching the Federal Reserve’s 2%target, it’s likely that next year will see a series of hikes to normalize the rate and bring it closer to a projected 4.3%.

Compared to the interest rates currently being offered (and depending on the details of your mortgage), this increase could cost you thousands over the life of your loan. If you’re hoping to buy soon, making a move now could help you lock in a loan with one of the lowest interest rates we’ve seen in 30 years before projected hikes increase the cost of borrowing.

If you’re not already convinced that now is the perfect time to look for your next home, Lafayette Federal Credit Union has a special promotion going that could be a game-changer. If you apply for a mortgage at Lafayette Federal before the end of the year, you’ll get

  • up to 100,000 reward points on a Lafayette Federal Mastercard? credit card (perfect for helping to cover holiday purchases)
  • your first payment due date extended by up to three months

After holiday expenses, a three-month extension on your mortgage due date is a pretty good gift for the new year!

Beyond these incentives, Lafayette Federal Credit Union’s status as a not-for-profit financial cooperative means it has attractive rates that regularly beat out offers from traditional banks and lenders. If you move now, you could be settled into your new place and ready to host the holidays in your gorgeous new home!

To learn more about this special promotion and get more details on the home buying process, visit bit.ly/LFCU-Holiday-Promo.

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