If you have been toying with the idea of buying a house, THIS IS THE TIME! Lately, we’ve noticed buyers feeling hesitant to make the leap to buy. Perhaps this is because of the rising cost/interest rates. People seem to be attempting to “wait out” the increase.
This is not an effective strategy. In recent years, interest rates/ housing prices have hit an all time low. What you need to understand is that these increases are signs of a healthier housing market, as more people are looking to buy, and the market stabilizes, numbers must go up.
In mid-September, according to Freddie Mac, the average rate on a 30-year, fixed-rate mortgage was 3.78 percent; in the most recent reading it hit 4.45 percent. It rose because global bond markets, which ultimately determine the rates on longer-term loans, judged that larger budget deficits and a faster-growing economy would result in higher inflation and more interest rate increases from the Federal Reserve.
For a family resolving to pay $2,000 a month for a home mortgage and not a penny more, the math works out that they can afford to borrow $397,000 today, down from $430,000 in September.
So basically, it’s not getting any cheaper to buy a house anytime soon. Interest rates and prices are still lower than they have been in years, which means, if you’re looking to buy, NOW IS THE TIME!