A decline in cash home sales is good news, but cash deals will continue to make sense for some. And there are other options to consider.
We see less and less cash deals in the current market for a couple of reasons. One is that thanks to the improved economy less people are unemployed and thus more people can qualify for a loan. Second reason is that mortgage rates are at an all time low.
In my opinion with current mortgage rates as they are, it does not make sense to own a home completely free and clear. Some of your equity could be better off invested elsewhere with a high return rate and bring in some profit. That way at least not all of your money is tied up in your home and you have some reserve that’s more easily accessible.