It was a crazy busy summer here in the Burbank area, but the fall is here and the market has cooled off a bit. Because of this slight slowdown, many people are asking whether they should wait until the busy spring season to sell their home. This is a great question - to answer it, let’s take a look at interest rates because they have the biggest impact on your spending power.
Say you get a $600,000 mortgage with the current interest rate of about 4.25%. Your monthly payments will only be $2,900 a month. Local lenders predict those low interest rates to rise next year. If you wait to buy, interest rates may be as high as 5.5%. If you lock
in a 5.25% rate next year, you will have lost 10% of your purchasing power! This means you will have to pay the same price for less home - you’ll have to pass on that $600,000 mortgage for a more affordable $540,000 one.
It’s really quite simple: If you are ready to buy, it’s probably not wise to wait. Now is the time to take advantage of fantastic rates and find your dream home. If you would like any assistance, or have any questions about real estate in our area, don’t hesitate to give us a call. We would love to give you a hand!