Can you really lose over $20,000 if you don't buy a home today?
Some of my friends at Republic Mortgage made this diagram representing how purchasing power goes down as rates go up.
The Federal Government is watching the market right now and trying to make sure a housing bubble does not occur again. As the market recovers it is likely that the rates will continue to rise. We've been enjoying record low rates for a long time, but the window for action is quickly closing.
It is time to lock in on a home now and take advantage of your extra buying power. If rates go up to 5.75%, your buying power will decrease $20,000. The market isn't going to depreciate that much this year to balance it out.
Here are some other articles about why NOW is the time to buy!
"Rates are going up because of the improving economy and the end of a government push to make mortgages cheaper." - ALAN ZIBEL and ADRIAN SAINZ - "Home Buyers Scramble as Mortgage Rates Jump"
"...the Federal Reserve’s $1.25 trillion program to buy mortgage-backed securities, which likely prompted our recent rock-bottom mortgage rates, came to end on March 31. As many economists predicted, mortgage rates are already on the rise again." - Amy Bell - "Why Now Is The Time To Buy"
"Freddie Mac announced this morning that mortgage interest rates rose to the highest level in 8 months." - Ilyce Glink CBSMoneywatch.com
"For people putting their homes on the market this spring, rising rates may actually be a good thing. Buyers are racing to complete their purchases and lock in something decent before rates go even higher." - ALAN ZIBEL and ADRIAN SAINZ - Associated Press
About the Author:
Utah Dave - Daybreak Neighboorhood Expert and Local Resident
My friends nicknamed me Utah Dave in high school because they said it didn't matter where we went in Utah, I would know how to get there and who we needed to talk to. The name sticks today as UtahDave has formed into a professional real estate network of Neighborhood Experts all across the state. I live in Daybreak with my wife and 4 amazing children. I enjoy dancing (which is how I met my wife Dawn) as well as traveling, coaching, and learning.