Interest rates dropped some yesterday, is this a good time to buy a home??

Question

Trying to get the most home for our money, so the interest rate makes a lot of difference.

Answer 1

Trying to get the most possible home for your money is an mistake the vast majority of buyers make. You are better off giving yourself a comfortable amount of room on your monthly budget, and buying slightly less home as a result. You don't want your first emergency to be a financial disaster you'll never recover from, do you?

That said, now is a great time to be locking a loan. There's a respite in loans going up. They have actually decreased a little. On the other hand, you generally need an address and loan amount to do this.

Right now, where I am is a full fledged Buyer's Market. There are 36 sellers per buyer (by ratio of listings to recently sold properties). This gives you incredible leverage with sellers. If one won't accept your offer, another who wants to sell will. People are sitting on the sidelines because prices have been falling and are afraid that they'll lose some money on paper for a while. 1) The only time your property value is important is when you sell or refinance. 2) Prices aren't going much lower (and I predicted this deflation two years ago) 3) Buyer's Markets don't last long. As soon as prices stabilize, buyers will come out of the woodwork, and when there are only four sellers per buyer, you don't have nearly the leverage you have now, and when prices start to rise, it turns back to a seller's market.

It'll take some time before you can sell at a profit. But the time for real bargains is right now.

Answer 2

The interest rate is currently on an upward cycle from a great low. It's still not terrible!

Because rates have been going up, the housing market has slowed down, both on existing home sales and new home sales.

If you are planning on buying a house, and staying in it long term, now is a great time to buy. The rates are decent, people are desperate to sell before school starts (and bringing down their selling prices), and property is almost always a good long term investment.

If you plan on staying in the home at least 5 years, and the interest rates drop considerably (at least a point or more), you can always refinance at that time with good credit. Just make sure you lock in to a fixed rate mortgage.

It's always a guess what is going to happen to the market. I'm certain few people saw Black Tuesday coming. But provided the economy doesn't take a complete nosedive, now is almost as good to buy as two years ago.

Answer 3

It's not a gamble or a roll of the dice, it is a business decision. When I was a 20 year old (thirty years ago!) I could afford a home then that would be worth at least $100,000.00 more today. Don't let interest rates make the decision for you.
Contact me at Villa Mortgage, 937-444-6847 (Ohio, Kentucky, Indiana). We can provide the correct mortgage program for you.

Answer 4

Sure, hopefully by the time the rates won't go up again. Try to know the most about the clauses in the application form so u don't face any surprises later.

Answer 5

Its always a guessing game. Some experts expect the market to soften more especially in some areas like southern California. Its up to you but you might want to wait and see if prices continue to soften some more.

Answer 6

It is a buyers market in most areas. Good luck!

Answer 7

Whether it is a "good" time to buy a home depends on your motives for buying a home.

Answer 8

Yes it does read some real estate articles

Answer 9

THE BALL IS IN YOUR COURT. IT IS A BUYERS MARKET. GO FOR IT