When it comes to buying a home or investing in real estate, there are two matters to always consider. The price of Real Estate versus the price of money . In the last couple weeks, interest rates and long-term mortgage rates have risen. 30-year Fixed mortgage rates have risen above the the 6% level a few weeks ago. Wall Street thinks the FED is done cutting rates for the time being as a result of inflation fears, the election outcome and to see how the Housing Rescue bill will take effect. why is this important when it comes to buying real estate ? On one hand, as Lewis Corcoran , a very talented mortgage broker points out , "We can never expect people to buy homes simply because, as the National Association of Realtors keeps saying and has been saying for 2 years now: "now is a great time to buy a home." as we do not know for sure when and where the bottom will be found. However, one must also take into consideration that if the experts are correct and interest rates do continue to rise into 2009, then, ... No matter how you cut it, even if home price remain level or even decline slightly, the actual cost of the home is rising. (Please see Home Prices down Price you pay is Up ) Again, how you finance your home can be as important as the price you pay. The price of money is steadily rising. If we have hit a bottom in real estate prices, then the cost of your home is going up. Period! If you are in the market to buy and believe that ...
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When it comes to buying a home or investing in real estate, there are two matters to always consider. The price of Real Estate versus the price of money . In the last couple weeks, interest rates and long-term mortgage rates have risen. 30-year Fixed mortgage rates have risen above the the 6% level a few weeks ago. Wall Street thinks the FED is done cutting rates for the time being as a result of inflation fears, the election outcome and to see how the Housing Rescue bill will take effect. why is this important when it comes to buying real estate ? On one hand, as Lewis Corcoran , a very talented mortgage broker points out , "We can never expect people to buy homes simply because, as the National Association of Realtors keeps saying and has been saying for 2 years now: "now is a great time to buy a home." as we do not know for sure when and where the bottom will be found. However, one must also take into consideration that if the experts are correct and interest rates do continue to rise into 2009, then, ... No matter how you cut it, even if home price remain level or even decline slightly, the actual cost of the home is rising. (Please see Home Prices down Price you pay is Up ) Again, how you finance your home can be as important as the price you pay. The price of money is steadily rising. If we have hit a bottom in real estate prices, then the cost of your home is going up. Period! If you are in the market to buy and believe that ...