Why Buy Now?
Why buy now? Since the beginning of the year, the 30-year fixed mortgage rate has fallen by more than a half point, from 4.3 percent to 3.8 percent. A half point may not seem like a lot, but it can translate into significant savings on a monthly basis and over the life of a loan.
For example, mortgage rates have dropped off so much this year that a buyer who started shopping at the beginning of the year for a $375,000 house could buy a $400,000 house now for the same monthly payment — an extra $25,000 of spending power.
Despite industry-wide projections that mortgage rates would likely climb to near 5 percent by the end of 2014, they have dropped back to levels the market hasn’t seen since late 2012. The dip gives consumers more buying power.
Buyers who started shopping for a home loan two or three months ago should have their agent or lender run their numbers again before continuing their search.
We are entering the holiday real estate market, meaning generally activity slows down-which can be a great opportunity for buyers. Buyers may not have to compete with other buyers and might be able to negotiate a great deal on a property that has been around for while.
So Why Buy Now? Low interest rates and good timing can make for a very successful and happy real estate transaction!
Call us to help you determine how much home you can afford and lets get started.
by Tracy Tkac