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“If prices may continue to fall, why should I buy now?”
Answer: While price is the major concern for anyone selling a home, overall cost should be your primary concern as a buyer. That means you have to take into account what your monthly payment will be, considering not only the price of the home but also the interest rate of your mortgage. Waiting for prices to bottom out while rates are increasing can wind up costing more over the life of the mortgage. Fannie Mae, Freddie Mac, the NATIONAL ASSOCIATION OF REALTORS®, PMI, and the Mortgage Bankers Association are all projecting interest rates will increase over the next several quarters. It’s best that you meet with your REALTOR® and mortgage professional to help you determine what an interest rate increase will cost you based on the expected size of your loan. Informed decisions are always the best ones to make.
