With the interest rate just beginning to fall, I hear many buyers wondering if now is the time to purchase their new home or should they wait until the rate falls even more. It’s not as simple as it appears. The buyer must consider many things.
Is the house that they want on the market now? If so, it probably won’t be when the rate lowers.
Will they have to pay more for a similar house when the rate falls? If the interest rate returns to the low rates that we’ve seen in the past few years, chances are that the market will shift back to the way it was a few years ago; a seller’s market with sales prices exceeding the list price, sellers not offering to pay closing cost and buyers having to compete with many offers to have a small chance at getting the house of their dreams.
What hidden cost is there to waiting? For one, if you are renting now, the money that you spend on rent while waiting is not recoupable, There may also be tax deductions that you are missing out on until you purchase.
How can you get the best of both worlds? Date the rate, but marry the house. In other words, Find the house of your dreams. Negotiate a good price and terms. Close on the house with the intentions of refinancing when the rates go down.
I hope that this helps with your dilemma. I’ll be glad to talk with you about your particular situation. Give me a call if you are ready to explore the possibilities!
Debbie Jones