While many home-buying hopefuls are racing to the bank to close their deals before the $8,000 tax credit disappears, not every potential home-buyer thinks the best deals are out there yet.
But the money one might save by looking for a better home price could pale in comparison to the huge cost of waiting if the mortgage market doesn’t hold steady, and most mortgage brokers & banks expect a rise in rates later this year.
“Rates are almost at an all-time low,” said John Fenech at Sunbelt Lending with Coldwell Banker in St. Petersburg. “We’re still at about 5% for a 30-year-fixed loan (for someone with good credit and a good job).”
John says even a 0.5% change in interest rates means a $56/mo. difference for someone looking at a $180,000 30-year fixed-rate home loan. That translates to $672 a year. And $20,160 over the course of a 30-year loan.
With inventory shrinking and supply at the 6 month mark a place we haven’t see in Pinellas County in 4 years buyer are starting to feel pressure they haven’t experienced in years. This translates to good news for sellers, and after the losses they have seen in the past 3 years it’s the light at the end of the tunnel for many.
If you were looking for a sign that right now maybe the best time to buy, “it is”. Here is your sign! Don’t put off buying the home a home.