Interest rates????

Many people looking to buy a house watch the interest rates and many are holding off until rates come back down.  Unfortunately, many lending and housing experts say we will never see 3-4% interest rates again in our lifetime unless the rate is bought down.  Many buyers are also unaware that interest rates change daily like gas prices and rates are not locked in until the client or buyer has a home under contract.  Lenders can usually lock a rate in for 30-45 days, but normally any longer than that and you will pay extra for that.

What is a rate buy down?  It is when you or the seller put money towards buying down the interest rate.  This can be done on a temporary basis or a permanent basis for the life of the loan.  Basically, you can usually pay 1% of the sales price to buy down one interest rate point.  Buying down just one point can save up to $210 per month or more for the life of the loan.  A great lender and a great realtor will be able to guide you in the right direction and the best option for getting the lowest interest rate.

Housing experts believe we will have one or two more federal interest rate hikes in 2023 before the rates start to settle down toward 6% by the end of the year.  If rental rates level out, apartments come online, and job growth stays strong, we should see a strong finish to 2023.  All are contributing factors to the housing market and housing prices.  We are still experiencing a housing shortage that will be around for a long time.  

Should you buy now?  Yes!  Seller's are giving concessions and you can get into a nice home for a reasonable fee.  We can all agree that costs never go down, so waiting for rates to go down to save money won't work.  If material and labor costs increase, the cost of buying a house will be higher in the future than now.

Call us and lets discuss your options and walk you through the process.