The Perfect Storm is Coming to an END! Rates are on the RISE and now is the time to BUY!

By
Real Estate Agent with Next Home Team NC 167273

Dear Buyer Sitting on the Fence,

I wanted to let you know that while 2010 has provided incredible opportunities with the lowest mortgage rates in history along with some of the lowest home prices in many years it appears the window of the "perfect storm" for buyers may be narrowing.  

Mortgage rates have jumped nearly 1% from thier lowest levels of around 4% for 30 year fixed loans. (That is actually a 25% increase) We are fast approaching the 5% mark (and in some cases we are already there).  While 5% fixed for 30 years is really a very low number it is all relative to your neighbors rate of 4% because he/she purchased two months prior.  Did you know that if you were looking at a $375,000 home at 4.5% you will only be able to afford a house less than $350,000 with the same monthly payment if rates go up to 5.5%?  That being said, should you decide to buy now versus waiting for another 6 months or so, your rate may very well be much better than your newer neighbor that is at 6%.  

This letter is not intended to shock or scare anyone into making a decision.  However, it is important to think about the fact that rates NEVER remain at all time lows forever and prices are starting to rebound so it appears that we are finally at the inflection point where they must start to go up.  

Please do not hesitate to contact me with any questions about your specific situation so that  when the time comes to buy, now, six months from now, or any time in the future, you are ready to make an informed decision.

Happy Holidays!

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Topic:
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Location:
North Carolina
Groups:
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Boot Camp 4 Real Estate
Tags:
interest rates
investment
mortgage
raleigh real estate for sale

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Rainmaker
1,311,170
Jeffrey DiMuria 321.223.6253 Waves Realty
Waves Realty - Melbourne, FL
Florida Space Coast Homes

It might get very scary if rates rise quite a bit and the govt takes away the Mortgage Interest deduction...yikes

Dec 14, 2010 03:10 AM #1
Rainmaker
101,811
Sheri Spain
Next Home Team - Raleigh, NC
Wake Co. NC REALTOR Apex to Raleigh to Wake Forest

I agree Jeffrey!  Real Estate works in cycles but buyers just don't seem to get that now is a great time to buy.  When I bought my first house the rate was 12.5% and that was after rates had come down from the high teens.  This will be something we can tell our kids about and not the norm over time.

Dec 14, 2010 03:20 AM #2
Rainer
33,846
Jennifer Marks
On Maternity Leave - Garner, NC

So true act now. When my parents bought there first home -- the rate was around 16% and they had to borrow  most of the 20% down.  20% down was the only option.  Buyer's don't seem to understand how good they have it.  Down payment assistance programs, low rates, Low down payment loans -- affordable home prices etc. 

Jan 02, 2011 06:40 AM #3
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Rainmaker
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Sheri Spain

Wake Co. NC REALTOR Apex to Raleigh to Wake Forest
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