Mortgage rates are at rock bottom and won’t stay there forever!
Buyers who choose to wait until prices come down more are also gambling that interest rates will hold steady or drop further. The impact interest rates can have on the real monthly cost of homeownership is very significant. Do you know that if interest goes up 1 percent, your monthly payment will go up 10 percent? What’s more likely? Home values dropping 10 percent or interest rates going up 1 percent? A home at $200,000 at 4.xx percent interest has a principal and interest payment of $x00,000 to have the same payment.
With current interest rates and the tax wire off you get from the government, you have an effective interest rate of around 3 percent. That gives you immense buying power. The odds of that happening again in your lifetime are very slim. Act now, or look back and regret it later.