📈Interest rates got bumped up fast because we were having run-away inflation, and the Federal Reserve wanted to Sloooowww Dowwwwwn the economy.
How’s it working?
Economists believe we need to see at least 3 months of lower inflation numbers before interest rates will decrease significantly.
Since interest rates on mortgages affect the affordability of homes, some buyers are waiting to buy until interest rates come down again.
HOWEVER, many pundits are concerned that when interest rates come down, Home PRICES WILL SHOOT UP again… This will negate the savings from lower interest rates.
Here in the Seattle area, home buyers are still out there looking, but not many homes are on the market.
If you’re trying to decide what to do, here are some reasons you might want to consider a home purchase.
Reasons to Buy Real Estate Now:
✨Millennials are a huge demographic bubble and they are 2 years into a 4-year demographically predicted buying surge. They are STILL OUT LOOKING!
✨The nation is short 4 million homes, so the overall supply is well below what the population needs.
✨Waiting to “time the market” is very risky… and it’s likely you will miss the dip. Most people say the dip happened last winter and now we’re seeing home prices going up again..
✨Buying low (while interest rates are high) makes sense. Interest rates can be re-structured once rates change. Think about how many times you’ve done a re-finance in the past 10 years.
✨Motivated sellers are currently giving great buying incentives – like interest rate buy-downs, and closing cost credits – These may not be here for long.
✨Buy and HOLD: For most people, if you can buy and hold onto a property for 10 years or more, you should see a huge upside in equity.
For example: With a 5% down payment, you will earn 1% in equity build-up through simple loan amortization. This gain results in a 20% return over 10 years. If the property goes up in value at the historic 6% rate per year, you could be seeing some fat appreciation gains as well.
With leverage, real estate tends to outperform the stock market.
Although its still a seller’s market, active buyers now have a chance of getting into a property without sacrificing a kidney or their first born child. If you are looking to buy-and-sell, the market is nicely balanced for you to take action!
Investing in real estate is how millionaires are made.
