I don’t know if you noticed, but interest rates have gone up almost 1% in the last several months. Like so many other things, interest rates are like our weight. It really easy to add weight, but much more difficult to lose some! I know, as I am 10 lbs overweight and it just seems so hard to drop it.
At any rate my point is that interest rates have been artificially low for the past several years and now that the economy seems to be recovering, the government is talking about slowing down the bond purchases which means supply and demand of the market will start to reset the interest rates. I am guessing that we are headed back toward 6%.
Why do I say all of this? It’s time folks. If you have been thinking of buying a bigger home, downsizing, or are a first time buyer just wondering should I buy a house right now, the answer is yes. I am 55 years old and these are the lowest interest rates in my lifetime, which means they probably won’t be back around for a while. When I got out of college the interest rate was 9% and that didn’t let me buy much house. All you young people out there please hear me. Buy now and buy as much house as you can afford; it will probably never as cheap to borrow as it is now. As always feel free to give me your comments. Rich Kemper RE/MAX Realty Unlimited 813-777-5332