To Buy or Not to Buy?

Real Estate Agent with First Properites of The Carolinas

Pessimists dominate the financial and economic news right now and may have you scared to buy a home.  In addition,  fears of the inability to qualify for a loan have many would be buyers putting home buying on the back burner.  So, should you go for it, or wait?

When economic times get tough, the Federal Reserve eases (lowers) the Federal Funds Rate which is the rate at which banks can borrow from each other.  The goal here is to free up liquidity in the market place and spur economic growth.  Don't confuse the Fed cutting rates by thinking that will instantly affect Mortgage Rates.  Mortgage rates are not cut by the fed.  Mortgage rates fluctuate based on supply and demand.  When there is a lot of competition for loans, lending institutions lower their rates to be more competitive.  Likewise, when there is less competition, rates go up. 

My opinion is to "go for it" and here's why.  Interest rates are still very low, inventories are picking up, and seller's are getting motivated.   Plus, because so many people are sitting on the sidelines, lenders want your business.  Things ARE much tighter then they were a year ago (and they should be)  - but talk to a reputable lender, you might be surprised at some of the options that may be available to you.

Steve Schwartz is a licensed REALTOR in NC and SC specializing in Fort Mill, Tega Cay, Lake Wylie, and Charlotte and the host of over 7 Real Estate websites including his REALTOR websites, and, and, (for home buyers) and, (for home sellers).

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