Friday, September 13, 2013

Is Waiting for Interest Rates to Come Down a Good Idea?

30 year fixed mortgage rates were previously at an all time low.  However, as you can see in this graph from KCM blog, they're now on the rise.

This makes many buyers wary about buying a home.  Surely they must come down some time, right?  Unfortunately, this may not be the best plan of action.  While no one can predict the future, professionals agree - waiting is not a good strategy in this market.

Most experts, including The Mortgage Bankers Association, Fannie Mae, Freddie Mac and the National Association of Realtors, actually anticipate rates climbing rather than lowering.

Couple this notion alongside the expected increase in home prices and interest rates, over time, the cost buying a house is only expected to increase.

In short?  Don't wait for the interest rates to come down, because they're not expected to.  Buying a house now will likely save you more money than if you wait.

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