Should i buy a home now?

Question

when i checked with my agent last week i was told the rate had gone up since the last time i checked in january. just wondering if i should buy now or wait another 6 months? does anyone know if the interest rate looks like its going to keep going up or going down?

Answer 1

here's the way I see it: In order for our economy to go back up and for the weak dollar to bounce back the interest rates have to go up. The stability of the budgets depends on healty real estate market. (Or rather people occupying all these properties and paying taxes) So when that happens countries like China will be encouraged to invest in mortgages because of a higher yield from the increase. Another note fannie mae and freddie mac are the first signs of the market bottoming out once the government owns most of the loans it will be in its best interest to raise the interest and pop it off to the secondary market (investors).

Answer 2

I wouldn't worry so much about the interest rate as the real estate market in your area.  Because the lenders are much stricter on borrowers, this has caused an abundance of homes on the market, FOR A GOOD PRICE.  In some areas, the values have decreased and others, like in Utah, the values are still increasing, but there are lots of people selling houses and no one buying.  This means that if you qualify for a loan, BUY A HOUSE NOW.  It's a buyers market. you can get a good deal if you do your research.  The people with their homes on the market may be getting desparate to sell and will take anything.  Buy now.  That's my opinion.  Also,  I think my cat just ate a piece of plastic.  he eats everything.  ANYWAY... remember you can most likely write off the interest paid on your taxes so a quarter percent won't make much of a difference.

Good Luck house hunting!

Answer 3

Forget about the rate... most houses are selling at bargain basement prices.  I'd buy a house now, I can't imagine rates getting too much lower, but I can see them going up along with house prices