My wife and I want to buy. Should we wait to see if prices fall, or take advantage of today’s low mortgage rates?

If you’re asking whether a significant price drop would lower your monthly payments more than a big increase in mortgage rates would raise them, it’s easy: You should probably root for the price decline. For example, the monthly payment on a $300,000, 30-year fixed-rate mortgage at today’s rates is $1,847. Rates would have to rise to 8.1 percent – nearly two full percentage points – before a $250,000 loan would cost that much. But it sounds as if you’re really asking whether prices in your area are likely to decline enough to justify holding off on a purchase. When it comes to that, frankly, your guess is as good as ours. While there’s no lack of experts making predictions about where home prices are headed in the next year, no one knows for sure.

So instead, focus on what we do know: Over the long haul, home prices in the U.S. have appreciated at about 6 percent a year, and even in the most volatile markets, one-year declines of more than 10 percent are very rare. And if you wait to buy, you’ll still need to pay rent in the meantime, so holding off would have a cost too. Meanwhile, a buyer’s market gives you leverage to get the most concessions you can from the seller.

In the market for Delray Beach real estate? Consult with licensed agent Caesar Parisi. Caesar has assisted hundreds of buyers and sellers, giving sound advice on how to most effectively buy and sell property.

click here for article

search for : ,