Buying now may be the right move in this market. Here’s why.
Are you considering buying a home this year, but you’re wondering if you should buy now or wait and see if more inventory hits the market? If so, today I’ll discuss why now is the best time to buy.
The main reason to buy right now is that mortgage interest rates remain near historic lows. However, they have started to creep up. Most experts agree that rates will continue to rise throughout the year.
“If you’re thinking of buying an investment property, it’s really important to buy now.”
Nothing affects a home’s affordability more than interest rates. For every 1% that rates go up, your buying power goes down by about 10%. For example, let’s say that you want to keep the principal and interest portion of your mortgage payment around $2,000. At 3%, your loan amount could be $474,000.
If your interest rate goes up to 4%, your loan amount could be $419,000, which is a huge difference. Higher rates mean that you’re spending more money on the interest throughout the life of the loan, so it’ll cost you more money for the house in the long run.
There’s also an indication that interest rates are going to dramatically increase on investment loans so if you’re thinking of buying an investment property, it’s really important to buy now.
If you’re considering buying or selling a home or you have any other real estate questions, please don’t hesitate to give me a call or send me an email. We hope to hear from you soon!
