No matter where I go, people always ask me two questions, "How's the market?" and "Is now the right time to buy a home?" My answers are always the same not because I'm being a salesmen, but because I'm telling the truth when I say, "Great, interested buyers are buying and sellers are selling."
One contributing factor to why this is a great time to buy is that we are enjoying a period of historically low interest rates. And as we all know interest rates have a huge impact on a buyer's final payment.
Take a look at the following chart from real estate trainer, Steve Harney which explains the impact of interest rates on mortgage payments. As you can see a $360,000 mortgage at 6% interest costs more each month and has a value of only 90% as compared to a $400,000 mortgage at 4.5% interest.
Steve Harney says, "You want the best value possible whenever you purchase anything. When buying real estate, the best value is not determined by price alone. Value is determined by price and financing costs. Take both into consideration when timing your purchase."
With this in mind, if you have any interest in buying a home in the near future please contact me. I would love to help you find a great deal.
*For the full article with this information go to http://kcmblog.com/2010/12/10/impact-of-rising-rates-when-buying-a-home
Where Are Mortgage Rates Headed?
The best people we can go to on this issue are the people who deal with it on a daily basis The Mortgage Bankers Association (MBA). Here is what was reported by MarketWatch in a recent article:
After reaching record lows in 2012, mortgage rates are expected to creep up slowly in the year ahead, the Mortgage Bankers Association predicted. Rates on the 30-year fixed-rate mortgage are expected to average 3.8% in the fourth quarter of 2012, rising to 3.9% in the first quarter of 2013 and eventually rising to an average 4.4% by the fourth quarter of next year.