Home Prices Vs. Interest Rates: What's the Best Time to Buy a Home?
Current Home Buyer Dilemma: Should I wait until home prices soften, or should I buy now when interest rates are low?
This is an age-old question and there is no "standard answer", since the answer depends on the potential buyer's risk tolerance. From an AFFORDABILITY perspective, any movement in mortgage interest rates will be much more significant to the buyer's bottom line than any movement in home prices.
Home purchasing affordability depends on 2 main elements: Home Prices and Mortgage Interest Rates: The likelihood of a "negative market correction" on home prices in the Charleston Area for the next 3 years is 3%-5%. The likelihood of mortgage interest rate hike for the next 3 years is at least 1%. A 5% decrease in home prices will reduce your mortgage payment by 5%. A 1% increase in mortgage interest rates will increase your monthly payments by 10%. So mortgage interest rates have a more significant effect on affordability than home prices do.
The morale of the story is: Buy now, don't wait!
Interest rates are at a historically low point.
Watch the video below and call 843-900-0155 to get started.