The Cost of Waiting to Buy
Every buyer wants to purchase at a great price and a low mortgage rate as that determines the monthly cost. Here’s how today’s buyers are being impacted: Price – Based on a home price expectation survey released by Pulsenomics on Aug. 8, more than 100 forecasters predict a 6.7% annual gain in home values for 2013. This rate is expected to slow to approx. 4.4% in 2014 and about 3.5% for the following 3 years. In other words, if you were waiting for the bottom of the market to buy, you’ve missed it. Prices are going up. Mortgage Rates – The Bankrate Mortgage Trend Index released Aug. 15 shows that 67% of the experts and Bankrate analysts believe rates will rise over the next week or so. Most experts believe the interest rate will level off between 4.5 and 5%. The Feds have artificially kept rates low in order to stimulate the economy. According to Frank Nothaft, Freddie Mac’s VP and chief economist, “as the economy continues to improve, we expect to see continued upward movement in long-term interest rates.” In other words, mortgage rates are going up. Increases in prices and rates impact you; your housing expense will be more a year from now if a mortgage is necessary to purchase your home. My advice is to buy now - it could lead to substantial savings. Contact me to work with the 2013 REALTOR® of the Year! Donna Forest 603-526-4116, donna@donnaforest.com, www.donnaforest.com