Yes, prices have fallen. In some cases, they have fallen dramatically, so for all of you who have been waiting to buy your new home, now is the time to do it. Remember the old adage, “Buy low, sell high”? Right now, we are in the “buy low” part.
As I talked about here, price is just one part of the formula when calculating when to buy. A major piece of the puzzle is the interest rate you will end up with. As luck would have it, interest rates are holding pretty stable right now. You can see what’s happening with rates by taking a glance at the little widget on the left side of this page. If you click on the link, it will show you how the interest rates are trending now. [Edit: this widget has been removed, but you keep track of the mortgage world over on the Social Media page. Just look for “Mortgage Stories” just below the banner picture.]
Getting a mortgage is more than just shopping for the best interest rates, and here is where you need to be aware of what’s going on in the market. It should come as no surprise to you that it is harder to qualify for a loan now than it was in the past. The pendulum has swung away from the easy-credit days that partly led to the problems we are having now. Don’t count on any easing of those new credit restrictions any time soon. Some are even saying that they might be tightened more. Go ahead and take a look at the financial calculators. Play around with some “what-if” scenarios, and get a feel for what your situation really is right now.
So, if prices are low, the costs to buy are low, and it is likely that it is going to be getting harder to qualify for a loan in the future, doesn’t it make sense to buy now, rather than wait and discover that you missed the best opportunity? Give me a holler if you want to talk about your options.