Mortgage interest rates have increased nearly 1.5% since spring. That rate spike increases your monthly payments considerably, sometimes making home ownership only a dream and perhaps you will have to say goodbye to your dream home. Or does it?
A recently published article in the REALTOR® MAG, the official magazine of the National Association of Realtors®, discusses the problems this causes for potential buyers. Buyers Say Rising Rates are Painful
Mortgage Interest Rates for 2013
Mortgage Interest Rates - 2009 to 2013
So, what should you do? Should you hurry up and buy before interest rates and home prices go up even further, wait to see if the slow-down causes interest rates to come down or stop looking and continue renting?
I would suggest, continue looking for the home (or investment property) you would love to buy, so you can keep yourself informed and be ready when opportunity presents itself. That way, when the right one comes along, you will know it and be positioned to act on your desire to buy.
Ready, willing and able buyers are eventually presented with the right opportunities. One thing never changes, and that is, everything changes.
Another change, and thus the good news here is that the competition for properties has diminished. So, your chances for getting your offer accepted have just increased while others return to sitting on the sidelines.
So, if you find the home that you have been looking for, one option would be to go ahead and buy it if it makes sense to do so. Consider the monthly payment - is it within your budget? Can you afford to buy it?
Also consider the savings on your income taxes - will your net cost be the same or less than renting? But remember, you must still be able to afford to make those higher payments each month.
If rates, in fact, do come down again, you could then refinance to the lower interest rate. And you can bet that, if rates do come down a bit before they increase further, as many experts predict will happen, buyers and investors will be back out competing for the already limited inventory of homes to purchase.
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Since 1998, Mark has been providing expert representation to buyers and sellers of homes, condos, multi-unit properties and multi-million dollar estates.
His clients include friends - old and new - colleagues, professional football and basketball players, original founders of Fortune 500 companies and other high-profile personalities, who value their privacy and anonymity. Mark has also consulted Nationally and Internationally with many interested in buying and selling real estate.
Mark can be reached at 619-246-2860.
Email: markonthemark@gmail.com
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