Mortgage Rates Rise – Still Good Time to Buy?

Mortgage Rates Rise | Right time to buyWith mortgage rates on the rise, the consensus is that this will slow down home purchases.

I personally think that is the wrong way to look at it.  Not everyone is going to buy when the interest rates are at their lowest, that’s past history now.

People buy when buying a home is affordable for them and when the opportunity is right.  When is the best time to buy is dependent upon each person’s ability to buy.

Interest rates may be going up, home prices may be going down – in the end, it’s just about being ready!

3 Important things to consider about home purchase timing

  1. According to the mortage rate trends over the past 30 years, we are still at all-time lows.  Getting the lowest rate at the bottom of the market is a myth – you don’t know what the lowest rate is until they go up.
  2. The median price for homes in California is low.  With the number of foreclosures taking place and the anticipation of possibly 3 million next year, homes in California are more affordable now than they have been in many years.
  3. There are still “First Time Buyer” programs available.  Some of these programs are limited to a certain amount of funds per program and can be depleted when you decide to purchase.

Keep in mind that purchasing a home is not only an investment it’s a place to live.

You will be making a payment either to a landlord or to yourself.  The pride of ownership is still the American Dream.  Being well educated in the process, is your first step.

Here at Homeownership University you will find a wealth of information for making wise decisions and finding down payment assistance programs in your area.

Find a good home buying team, a lender and realtor, who will be looking out for your best interests.

Final word, take a look at your options and then make a decision to buy.  You may be surprised at what your options are.

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2 Responses to Mortgage Rates Rise – Still Good Time to Buy?

  1. Matthew December 14, 2010 at 8:12 am #

    What I would like to know is: when salaries and unemployment are not getting better, and interest rates are on the rise, why are listing prices starting to go up?

    Even more baffling: actual sales prices are going down and down, but listing prices (where I live) are going up. Why would this happen?

    • Legacy Content December 14, 2010 at 10:15 am #

      Hi Matthew,
      Real Estate is a very strange animal made up of literally thousands of “micro-markets”. The economy for the entire country does not always reflect the economy of a specific town, county, community. It is for this reason that we see some very inconsistant patterns that sometimes, lead or lag the “average” market.

      The biggest factor in house prices is not salaries or unemployment – it’s supply and demand. If there is little supply and moderate to great demand for home purchases in your community, you will see prices rise.

      As for sales prices dropping and listing prices rising? That sounds like the work of a few, and not the masses. Is this one specific Realtor or Real Estate Office? If homes are being listed far above what they are being sold for – it sounds to me like a sales tactic by a listing company trying to get more inventory.

      Interesting question – I’ll bet the answer is not that difficult to figure out if you dig into it a little more.

      Thank you for reading and thank you for your question, this is a very interesting situation.

      I know there really isn’t an “answer”, but i hope this was helpful.