Should I Wait for Interest Rates to Drop Before Buying my Next Home?
Each time interest rates tick higher, a buyer's purchasing power decreases as well. . .
Is this a good time to buy. . or should you wait?
1% Rate Change = 10.75% Purchasing Power Change
The changing mortgage rates do more to influence home affordability and home prices
They also can change your monthly mortgage payment to the bank
Your timing is key if you want to buy the most expensive house at the lowest price that you can afford.
If that seems strange to you, think back to the last two years,
you've missed the bottom already!
What a great time was to buy a move up home then. .
a vacation condo in Florida near the beach was easily found for around $100K!
An investment townhouse walking distance to the Metro Rail System was valued around $150K
Even a condo in Bethesda Maryland was under $200K then.
Your buying power is being reduced almost by the day!
Interest are on their way up . .if you look at the history for the last few years. .
The odds are overwhelming for interest rates to go up . .rather than going down again
Mortgage rates rose almost a full point between late May 2013 and early July 2013, but they are still far, far lower than they have been for years and it is time to act
If you are . .or will be in the market to buy a home in the next 12 months
Buy it now. .you'll save money . .that is my advice!
If you need direction and explanation of our current real estate market or looking to buy a home now, contact us at 301-246-0001
Let us provide you with expert representation and guidance
About the Author
Fernando Herboso is a Broker for Maxus Realty Group in Maryland. He is the founder of Maxus Realty Group and a team leader for Herboso & Associates llc
You can also connect with Fernando via email: Fernando@ReallyNiceHomes.com