The impact of interest rates when you decide to wait to purchase.
Should I buy a home now while interest rates are low, or should I wait for prices to decrease? I’m asked this question all the time, so today I’ll dive into what can happen if you wait too long to buy.
If you bought a home in the $550,000 price range with 10% down at a 2.75% interest rate, your payment will be around $2,021 per month. If you wait and hope that prices drop in the near future, which doesn’t seem likely, you would have to buy a $456,000 house with 10% down at a 4.25% interest rate to get the same monthly payment.
A $100,000 price drop equals a 2% rise in interest rates. We’re expecting interest rates to increase this year and over the next couple of years. I recommend buying now while interest rates are low to lock in that payment and not gamble with prices.
If you have any questions, don’t hesitate to reach out to me by phone or email. I look forward to hearing from you.