It’s October and the interest rates have dropped to just 4.07% which is huge because they will probably never be this low again. Which I also know that that’s what every buyer has been hearing since the 2012, “They’ll never be this low ever again” yet so many buyers are waiting till 2014 to purchase when they have the ability to do so now.
October 14th, 2012 interest rates were as low as 3.27% which is a number so astounding it’s hard to wrap your head around it. Fast forward to October 3rd, 2013 and they are at 4.07%. Interest rates were at 4.14% on September 9th, 2013. Interest Rates have dropped from where they were earlier this year. While they might not be as low as in October of 2012 they are as low as they will go for the remainder of 2013 moving forward.
Interest rates have dropped and yet there are still buyers sitting on the fence about purchasing. These are the same buyers that went to purchase a few months ago and saw interest rates were in between 4.5 and 5.2% based upon the type of loan and said I’ll wait till the rates drop. The average rate across America rests around 6%. Not 3.75%, 4.25%, or even 4.07%. It’s 6%. When my parents bought their first house the rates were at 11%. These are historic lows and if buyers that are on the fence do not take advantage they’ll pay for it later.
So what happens if a buyer that is on the fence about purchasing chooses not to purchase even though the interest rates have dropped? A quarter of a point swing in the wrong direction could be difference between affording the home you want and settling on the home you don’t want. You see a quarter of a point could swing our monthly payment anywhere from $200 to $400 more a month. That means the house you loved at $250,000 is unaffordable and you’ll have to choose the house at $230,000. For those of you that don’t know there’s a big difference between those two prices, night and day in fact.
The point is simple people. Interest rates have dropped yet again but they won’t stay at 4% for long. They are going to go up. They have to go up. If you’re on the fence about buying and you choose to wait till 2014 or even winter of 2013 you might find yourself in a very unpleasant situation with what your lender can lend you and what your monthly payment will look like to get it; all because you sat on the fence and waited to purchase. Don’t wait. Call us today and we’ll be happy to show you what’s available on the market and how we can get you your dream home.