I purchased my home in 2011, when I could no longer afford to rent an apartment in Ann Arbor. That is what people have been realizing for the last few years. With interest rates at historic lows people that at one time would be hard pressed to purchase a home, even though they had good credit, could purchase a home. The low rates also helped with people that were upside down in their mortgage, giving them the ability to refinance and keep their home.
It now seems that this trend is going to be changing because of a jump in Mortgage interest rates. Now they are at about 4.5% APR instead of 3.5% from last month up to last week. The rates are going to continue to rise this is in response to the FED no longer paying to keep them low and helping to prevent another bubble collapse.
The good new is if you have been thinking about buying a home, but for some reason have not started looking, this should be your catalyst! Find a realtor now and get looking because in the 12 months when you are "Ready" you may not be able to afford what you can today. Stock brokers are noted for saying buy low sell high, I like to think in real estate that applies but you also can pay less interest then you earn.
IF YOU MOVE FAST YOU CAN STILL EARN MORE EQUITY THEN IT COSTS YOU TO FINANCE!
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