I recently read a new article on Forbes.com that looked at the question of whether a potential home buyer should buy now, or wait and risk potentially spending more money down the line.
The article brings up some good points: inflation, rising prices, and rising interest rates all are very good reasons you might want to consider now instead of purchasing later when the market will be less buyer-friendly.
Mortgage rates are heading towards the 5% range right now, which is a big difference from the mid 3% range that we saw just 6 months ago. Rates could go even higher than 5%. They could go up to 6%, or even higher in 2014 and 2015. Your monthly payment can go up several hundred dollars with just one interest rate point on your loan.
Rates currently stand in the mid 4%’s, but they can fluctuate quickly and we anticipate, over time, a general rise in rates. As the Federal Reserve discontinues their mortgage backed securities purchasing program, rates will rise. When they stop buying them, the demand lowers, and rates go back up to average levels. Also, home values are rising and are expected to only go up from here for the foreseeable future.