Courtesy of the NAHB:
Should I Wait Until Interest Rates Go Even Lower to Buy a Home?
Current mortage interest rates are extremely favorable for buyers. In fact, rates for 30-year, fixed-rate mortgages are hovering near 30-year lows.
No one can accurately predict whether rates will go up or down. Even those who follow the market for a living can't figure out when interest rates will bottom out. If they could, they would all be multi-millionaires. Waiting to time the market is a dangerous - and losing - game.
Also, home prices don't necessarily move in unison with interest rates. So, if you decided to roll the dice and wait to purchase a home, and the price were to actually drop $10,000 from where it is today, you could still end up losing money. How? If interest rates were to move up by a half-a-point during this period, the savings on the reduced home price would be more than offset by the higher monthly payment you would be making and the total amount you'd spend over the life of the loan.
In short, the smartest and safest time to buy is now. We know that interest rates are low today. We know that home prices are down. We know that there are plenty of homes on the market to choose from. We know that sellers are willing to bargain. And we know that builders are willing to offer attractive incentives to get your business.
Many people looking for a new home in Houston have asked me what to look for in a new home. While most people concentrate on the model home, this does not really give the consumer a real idea of the capabilities of the builder. To get a real idea of what a builder has to offer, start with selecting a community or area of town you would like to live, then find builders in that area. Rather than drive around for hours, save yourself the time by going to one of the online portals such as New Home Source to narrow down you search of builders, plans and price ranges. After you have done this, visit the communities first and talk to some of the neighbors about the community and the builders. It is important to get first hand testimonials and evaluate the community. When driving through the community, pay attention to the conditions of the homes under construction. A well run community will have clean job sites, homes that appear to be progressing through construction and have an orderly appearance. One you have narrowed down the builders and toured their models, make a spreadsheet of their standard features to evaluate what is included. This is a good way to compare the value proposition. For me information about selecting a builder, please visit our website www.ourfirstnest.com
Houston Realtor, Pearland Realtor, helping buyers find their new homes in Houston and Pearland
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