Tag Archives: buying home

Interest Rates and the Rising Home Prices

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Should You Wait for Lower Prices and Interest Rates?

Home prices have been rising for over seven years, and mortgage interest rates for five years. Should you wait to buy a home? The numbers say no.

According to the National Association of REALTORS®, the median existing home price is more than $250,000, the highest it’s ever been. If you wait to buy a home, you’re losing the opportunity to build equity, or ownership, in a home of your own.

If you’re worried that homes are priced too high and you’re afraid of losing money, consider this: According to the U.S. Bureau of Labor Statistics, prices for housing were 50.88% higher in 2018 versus 2000, for an average increase of 2.31 percent a year. The average inflation rate for the same period was 2.07 percent. Home ownership beat inflation by 0.24 percent.

Mortgage interest rates hit all time highs in October 1981, when a benchmark 30-year fixed rate was 18.45 percent (with 2.3 points paid by the borrower), according to Freddie Mac. The lowest took place November 2012 at 3.35 percent with 0.7 points. At about 4.5 percent for a conforming fixed-rate for those with good credit, mortgage interest rates are tantalizingly low.

The best time to buy a home is when you want to, not when you think the market timing is best. Unless you have a crystal ball, you don’t know if prices and interest rates will recede, plateau and or rise. Look at homebuying for the long term, and you’ll be glad you didn’t wait.

As always consult your financial professional for interest rate information and advice.

Buyer’s Advice

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Buyer’s Advice Buying In An Urban Neighborhood

As you shop for a home in town, you may have to compromise on square footage, but you’ll be happier if your new neighborhood offers everything you want in an urban environment. Think about features that are most important to you and your family.

Walkability. Is there a bike path or pedestrian sidewalk nearby? Can you walk the dog or take the baby for a stroll safely? Look for lots of street lighting and foot traffic. How close is the nearest Starbucks coffee shop?Buyer's Advice

Transportation and commute time. Are you close enough to subway, bus or train services? If you take a car, is there a garage you can use or do you need to buy a parking space? How long will you spend in the car for your daily commute to work? Down time is good, but long commutes get old fast.

Parks and community centers. You may have a garden or yard, but you’ll also enjoy the beauty a park offers. The local YMCA or community center can offer swimming, spinning, and activities for the kids. The local library could have a 3-D printer or have classes in calligraphy or bookbinding.

Shopping, restaurants and services You want grocery shopping, dropping clothes at the dry cleaners, and getting your car serviced to be handy. It’s also fun to get out to the local pub, see a play or go to dinner occasionally. Hopefully you won’t have far to go.

Considering the neighborhood will make leaving and coming home much more pleasant.
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