Buyers: Don't Wait Too Long!

Historically, the interest rates of today are extremely low. Back in the late ‘80s and early ‘90s, interest rates of 9-12 percent were common. But today, interest rates are substantially lower. With that said, though, interest rates are starting to creep up. So if you wait too long to take advantage of the great rates available, you may end up paying more than you need to for a home.
For example, a lot of sellers made the mistake of waiting for the market to peak before listing their home. However, many of them waited too long, and by the time they listed, the selling market had already started its decline-hence the high inventory. As a buyer, every day you wait to buy a home is another day for the interest rate to rise. So even if you wait for a seller to lower their price by $10,000, if you take a mortgage rate that’s a percent higher, the amount of money you save on the home’s asking price is meaningless because you’re paying more than that amount in financing fees.
Think about it. If you were to buy a car and only look at the monthly payments and not the overall cost of the car, people would say you were being naïve. The finance fee definitely impacts the price of the car, just as it impacts the price of your home. So since prices are down, act now. While you’re waiting for home prices to decline further, your finance charges will continue to rise.