Skip To Content

    Now is the Time to Buy

    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!

    Trackback from your site.

    Leave a Reply