It’s About Payment, Not Price!

For Buyers who are waiting for prices to fall, they should focus on two metrics, price and interest rates.

What the majority of buyers focus on is price and only price.

Consider this:

On a $200,000 mortgage @ 4.5% interest, the monthly payment is $1,013 per month. At 5.5% the payment is $1,136 per months. That’s a 12% increase in monthly payment. At 6.5% interest the payment is $1,265. That’s a 25% increase.

If you are in the market to buy a home consider price, then consider the actual value of today’s interest rates.

If prices fall another 10%, but interest rates rise 1%, fewer home buyers will be able to qualify to buy a home.

My advice, buy now and more importantly, lock your loan.

Garey
gteeters@coldwellbanker.com