What Are Buyers Waiting for?

With low home prices and ultra-low interest rates, the housing market is offering perhaps the
best deals of this generation.

Since the housing boom of 2006, home prices have fallen about 31 percent. Also, mortgage rates
have been hovering at record lows for the past few weeks (4 percent range or even lower on 30-
year fixed-rate mortgages).

It’s hard to see the possibility of losing on a home purchase right now with these mortgage rates.
Prices may go lower, but not by much.

Here is a good scenario that shows that waiting to buy is probably not a good idea. Buying a
$300,000 home with a 4 percent mortgage rate and a 20 percent down payment would mean
a $1,145 monthly payment. The Mortgage Bankers Association recently predicted that home
prices may fall another 3.5 percent by mid-2012 but mortgage rates will increase by a half-point.
So for that same loan under that scenario, a home would sell for $289,000 while the monthly
mortgage payment would be $1,171… only a $26 difference.

So…for those who can qualify for a mortgage, playing the waiting game won't result in much of
an advantage. The Dale Marciniak Team can discuss your personal situation and best strategy
for getting a great deal right now!