I have some good news … because we had a few interest rate spikes, qualified home buyers do not need to abandon the idea of home ownership. You did not miss the boat! Interest rates are still lower than they’ve been in nearly 50 years. Think about that for a minute. That is not an opinion, that is reliable data all qualified home buyers need to consider before they give up their goal of home ownership. Interest rates have not been this low in nearly 50 years.
In the United States, we are beginning to nudge into the 4 percent interest rate range. Even if interest rates reach 5%, this is still historically quite low. What does this mean when it comes to buying a home? We don’t need to over-react and run scared that we’re somehow going to get ripped off if we buy a home now. What it means is, we can still borrow money at considerably low rates, right here, right now.
If you think you missed the opportunity a few months back when rates were lower, you are only considering one factor and one factor alone, interest rates. There is more to the home purchase equation than interest rates.
An encouraging shift is that more inventory is now showing up as active sales. Home buyers are enjoying the benefit of a consistently increasing amount of homes to choose from in today’s residential real estate market. When rates were lower, inventory was also lower; giving potential buyers less choice and frequently forcing compromise.
So, you see, there is another side to this trend … rates are admittedly slightly higher yet, home buyers have more reasonably priced properties available to them; which could likely mean a more satisfying overall experience as a buyer.
Since home prices are not shooting up sky high and inventory is more plentiful this can considerably offset the less favorable trend toward slightly higher interest rates. Buying a home in this market with the currently attractive fixed rates can still prove to be an essential and smart investment.
Once you do a little leg work and learn more about your current financing options you may be inspired to call your REALTOR and visit local homes for sale. There may just be an opportunity in the waiting for you to ride the wave as a smart, saavy home buyer!
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Copyright 2013: Valerie Anne Martinetti