Mortgage interest rates are climbing. Will these rates continue north, hover, or head south with the next round of terrible real estate news? Are you willing to gamble?
If you have a penchant for market timing and enjoy séances, you may be tempted to remain in orbit and view a home purchase from afar. Those who may be a bit more conservative and are shopping for real estate are advised to evaluate the current market carefully.
Hovering doesn’t count. Decisive action in real estate acquisition runs in two directions. It’s either time to buy or not to buy. That is not to say that taking a wait and see attitude implies lack of direction.
If you are a market timer, I suggest you jump ship and join the “I figure it this way right now crowd.” This camp is becoming less inclined to predict mortgage rates will retreat to the sub 5 percent level.
If rates continue to climb, serious buyers may miss the penultimate opportunity to cash in. Achieving the lowest price at the most attractive interest rate are perhaps the two most important financial considerations underpinning all real estate transactions.
Home sales are picking up; interest rates seem to be rising. Take a look at the last 3-month charts and see for yourself here and here. Sidelined cash needs to get back into the game quickly in order to catch low tide.
Cash buyers have always been king. Secondarily, those with FICO scores above 700 and a liquid 20% can get that conventional and quicker mortgage commitment. New homebuyers have the $8000 federal incentive (The American Recovery and Reinvestment Act of 2009) to get in the door before December 1, 2009.
So, you can gaze at your new home from afar. You can hover and continue to fence sit, or, you can pull the trigger and make a great deal. What say you?
John Kavaller: Licensed NYS Agent and Realtor
Catskill Sales Associates
http://www.catskillcountryrealestate.com/
http://www.catskillcountryrealestate.info/
845-482-3200 Ext. 13:
Office845-492-0261:
catskillsrealestate@gmail.com
