There are 2 potentially huge events soon to come that could impact your back pocket as a buyer. Most know about the tax credit for up to $8000 that ends on April 30th of this year. If you are a buyer and don't have your new home under contract by then you just cost yourself up to $8,000. The second event, and potentially more costly, is a plan by the feds to quit buying mortgage backed securities by the end of March if this year. If this happens as discussed there is talk that we could see an immediate spike in interest rates and a continued climb back to 6 - 6.5% by summer. If this happens buyers who wait will have lost out the chance to by at rates that may not be seen again in our life times. Think I'm being overly dramatic? Then look back and see when 30 fixed rates were at their current levels.
The message is simple, if your a buyer there is no better, more opportune time than today. Will buyers be buying when this is all over and we have no tax credit and the rates are 8% and up again? Absolutely, but they'll be paying money out of pocket that you won't have to if you act now.
Walter Hayes
Comments (0)Subscribe to CommentsComment