Don’t Hesitate: Costs Associated with Waiting

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Around the United States, prices continue to rise in most markets.  If you’re waiting for the market to shift toward a “buyer’s market,” think again.  There are costs associated with waiting to buy a home…

 

Waiting Can Cost You

 

  • The median home price in 2016 was $281,400 and increased to $291,200 in 2017, per the United States Census.

 

  • Mortgage Interest Rates are rising and are expected to continue to edge higher. Analysts believe the average mortgage payment is expected to jump more than 12% year-over-year.

 

  • Disposable income likely won’t increase enough to make up for higher mortgage rates.

 

  • Data shows that an average monthly mortgage payment could rise as much as $100 within the next year.

 

  • Material costs are rising.  Windows, lumber, concrete and other materials are being invoiced at a much higher rate.  If you’re looking for a new home, don’t hesitate.  Now is the time to build your dream home.

 

If you’re serious about buying a new home, contact a local Real Estate Agent to begin the process or contact one of our experienced REALTOR® partners. We speak: English, Spanish, French, Vietnamese and Albanian. (727) 546-6611 or visit: americanhousingbuilders2.com

 

Interest Rates ↓ Down

The time is now to buy a new home

 

Long-term US mortgage interest rates declined last week, after a steady rise over the past year that lead to our highest-level mortgage interest rates in more than four years.  Freddie Mac reported that the average rate for a 30-year, fixed-rate mortgage recently fell from 4.58 percent to 4.55 percent.  One of three great reasons to buy a home right NOW…

 

Ask any professional Realtor® why it’s time to buy and they’ll tell you:

  1. Today’s interest rates will likely continue to increase. But what does that mean for you as a home buyer?

Imagine your mortgage principal is $200,000.  If you secured your mortgage with a 3.87% interest rate, the total interest you’d pay over the course of the loan will be $138,571.  Now, if you secured a mortgage with a 5% interest rate, the total interest you’ll pay over the course of the loan climbs to $186,152, a difference of $43,581!!!

Locking-in a lower interest rate will save you thousands of dollars, which is why securing a loan now is in your best interest.

  1. Homes are becoming more expensive. Home prices have been steadily rising for over 5 years.  Extensive labor shortages and spikes in material costs are causing home prices to climb.
  1. If you wait, you’ll have fewer homes to chose from. Low inventory (when there are too many people buying homes and not enough homes for them to buy) drives up home prices, resulting in less inventory for the home buyer to choose from.

 

Fun Fact: In October of 1981, the average mortgage interest rate for 30-year mortgages reached an all-time high of 18.63%.