10: Buying a new home when you haven’t sold the old oneby Tim Manni
Towards the end of each year, HSH.com features the 10 most popular pieces of content from that year. Just like the last few years before it, 2013 has been an interesting time for the mortgage and real estate markets. Mortgage rates fell to near-historic lows in 2013 and then subsequently rose over a percentage point above those yearly-low levels.
This year, we’ve seen changes to Fannie and Freddie, the refinance wave has crested and broke and the Federal Reserve has just announced the beginning of the end of its long-term plan to keep interest rates low.
Without further ado, here is number 10 on our list: “Buying a new home when you haven’t sold the old one.”
Like much of the content on our top-10 list this year, “Buying a new home when you haven’t sold the old one” was not written in 2013, in fact, it was written several years ago near the height of the housing crisis.
“Buying a new home when you haven’t sold the old one” is symbolic of the change that took place in the wake of the Great Recession: something that was once easily accomplished in the real estate market was now ostensibly more difficult and precarious, putting homeowners and homebuyers in a difficult bind that they may have not faced before.
There are many reasons why you might need to buy a new house while your old one’s still on the market — you want to make the deadline for the $6,500 tax credit for repeat home buyers, your job has been transferred or you just found the perfect house and don’t want it to get away. However, thanks to the housing crisis, it isn’t as easy to get financing for this kind of transaction as it used to be.
Be sure to read “Buying a new home when you haven’t sold the old one” in its entirety.