Here’s why waiting to buy a home may cost you in the long run.
What is the cost of waiting? By the end of the year, we usually know what the Federal Reserve plans to do. This year is no exception: The Fed will raise interest rates slightly next year, or at least, that’s what a lot of people are predicting.
If the interest rates went up 1.25%, a $340,000 home would have the same monthly payment as a $400,000 home does today. Waiting will cost you either $60,000 off your home value or several hundred dollars on your monthly payments.
Rates are expected to rise as high as about 3.5%. We don’t know what the future holds, but we can say that the Fed has taken decisive action. They were buying mortgage-backed securities and keeping our rates low, but now they’ve decided to back off of that position. Rates won’t rise quickly, but they should increase over time.
Pay attention to rates because waiting could cost you. If you have any questions or there’s anything we can do to get you in the right home, call us today at 770-634-9710. I promise you’ll be glad you did.