Is it a good time to buy a home

is it a good time to buy a home

Is it a good time to buy a home

Is it a good time to buy a home?

 

With interest rates increasing this year is it still a good time to buy…let us discuss the facts

 

First, rates have increased and that affects the mortgage payment and how much home a buyer can afford.

 

Second, inventories are increasing, and the real estate market is slowing down. We are seeing less multiple offer situations and the escalation of sales prices. We had seen homes selling for $50,000-100,000 over asking just a few months ago.

 

Third, the Federal Reserve raised interest rates by .75 of a percent on July 27th and mortgage rates actually went down. How can that be? With the refinance market dried up and mortgage companies doing half as many mortgages as just a year ago they are fighting for what business is out there and have gotten more competitive. The mortgage companies profit margins are being reduced to stay in business and have market share.

 

So, to answer the question “Is it a good time to buy a home?” The answer is yes…buyers have more inventory to look at, less likely to pay over asking price and the difference in the increase in interest rates and not paying a premium to get the bid is close to a wash.

 

Just call me and I can show you how the numbers work.

 

I hope you found my blog on “Is it a good time to buy a home?” helpful. Look for more blogs on all aspects of Minnesota, real estate, and the world around us.

 

Just call, text, or email me with questions.

Jeff Anderson

The Anderson Team

www.mnrealestate.com

RE/MAX RESULTS

612-386-8600

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