With Low Interest Rates, Now Is a Good Time To Buy
Q: I’ve been thinking about buying a house, but I heard that interest rates are going to stay down for the next couple of years. Now it seems like there’s no rush, and I should wait to see if prices drop even further. What do you think?
A: If you want to buy a house or property, now is still the time to do it. It’s true. The Federal Reserve (The Fed) has announced it is going to keep rates low through 2015 and want to encourage low mortgage rates. (We won’t get into how, exactly mortgage rates are determined, but generally speaking, this announcement is good news for all kinds of borrowers, including those wanting to get a home mortgage.) But low interest rates don’t mean you have any more time at the “bottom” of the real estate market than you did before the announcement.
The fact that interest rates are likely to stay low for another couple of years simply means people will continue to get more house for their money because they’ll be spending less on interest. It doesn’t mean there will be more houses to sell, or that prices will stay low or drop further.
My advice has been, and is still, to buy a house now if you’re ready to do so.
Remember, The Fed is doing this specifically to encourage home sales and the economy in general. That combined with the slight, but very real uptick in home sales across the country and in the greater Albuquerque area could easily mean we are at the bottom of the market now.
If that’s the case, over time, you can expect to see fewer homes on the market and prices slowly creeping up. Granted, that all might take a while, so you have the time to find the house you really want. But don’t get out of the market altogether, waiting for a better time to buy.
I can confidently say (reminding you this is only one Realtor’s opinion) that this is the best time to buy we’ve seen in years and are likely to see in years to come.
So get out there and find yourself a great house, get that amazing interest rate and enjoy!