Buyers, if you think you should wait to see if the market goes any lower, be careful and forewarned. Waiting could and will cost you money!
Interest Rates... A Different Perspective
I know that every agent you have talked to has been talking about interest rates. But when someone says they are low can you imagine what that means.
Most of us don't walk around with calculators in our pockets, so I am here to help you invision what that would mean when it comes to buying a home.
Lets say today you are qualified to spend $400,000 with a 30 year fixed 4.5% mortgage.
The home above is currently on the market for $440,000. As you can see is a gorgeous home here in Gig Harbor. Now lets say, you are afraid of many things that are being talked about in the media and you decide to wait a couple of months. In just a couple of months the interest rate goes up 1/2 of a point. With that simple 1/2 point adjustment now you qualify for $25,000 less. So now you can't get that home.
If you wait even longer and lets say the interest rates are now higher and they have gone up 1 point. Now you put yourself at $50,000 less that you qualify for. And this might be a stretch, but lets say they go up 2 points.
Now you are $100,000 less!!!
In Gig Harbor that would buy you something like this...
I kid... But you know what I mean. It may not be what you originally
thought you were going to get in a home.