Is it time to get off the fence and buy a home?

If you been thinking about buying a home, read the following excerpt from a REALTOR Magazine article and you decide….

“Though borrowing costs are increasing as interest rates have lifted from their historical lows, some real estate professionals believe the rise may boost home sales. 

“It will get people sitting on the fence to decide, ‘We better do something or it’s going to cost us money,’” says Margaret Dixon, a real estate sales associate with Crye-Leike in Tennessee.

At the end of 2012, 30-year fixed-rate mortgages averaged 3.52 percent. Last week, Freddie Mac reported that 30-year rates averaged 4.47 percent. 

“A 1 percent increase usually lands around $30,000 in buying power,” says Todd Reynolds, a real estate professional with Goodall Homes. “That’s the difference between a starter home and a bigger home — or a bonus room.”

image

Higher interest rates, along with higher home prices, may prompt more home buyers to act quickly before costs rise any more. 

“They realize the house of their dreams may never be cheaper than it is today,” says Reynolds. “It creates a sense of urgency.”

Economists are predicting that mortgage rates will likely rise to 5 percent or 5.5 percent in 2014.

“Most people realize the [3 percent-range interest rates] are gone, and they’d better be glad to get 4.5 percent,” Jay Bradshaw, an agent in Cumberland, Tenn.”

Advertisements

About Susy Hurlbert

Eastern Connecticut Association of REALTORS Chief Executive Officer
This entry was posted in Home Buying Process and tagged . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s