election results: Now that the Election is History, Is this a good time to buy?
- 11/08/12 11:11 PM
Now that the election is history, is this a good time to buy? Here are the factors to consider:1. Interest rates - Right now, Interest Rates are still at historic lows. A .5% change in Interest Rate affects your payment the same as a 6% price increase. For each $100,000 of loan, a .5% rate increase raises the payment by approsximately $30 per month. Similarly, a $6,000 increase in the loan raises the payment by approximately $30 per month. So, home prices will have to drop by 6% for every .5% interest rate increase. That's not likely to happen.2. Housing demand is … (1 comments)
Now that the election is history, is this a good time to buy? Here are the factors to consider:1. Interest rates - Right now, Interest Rates are still at historic lows. A .5% change in Interest Rate affects your payment the same as a 6% price increase. For each $100,000 of loan, a .5% rate increase raises the payment by approsximately $30 per month. Similarly, a $6,000 increase in the loan raises the payment by approximately $30 per month. So, home prices will have to drop by 6% for every .5% interest rate increase. That's not likely to happen.2. Housing demand is … (1 comments)
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