Are You Waiting To Purchase? Don’t!
Are you waiting for home prices to drop before purchasing property? Did you know that before prices drop, interest rates will likely go up?
Real estate moves in cycles, generally 10 year cycles. We are currently in the middle of our recovery cycle from the Great Recession that started in October 2008, give or take. It’s more art than science to predict the exact length of our recovery, but real estate values are currently on the rise, not decline.
And as our recovery gets stronger, interest rates will start to climb to keep us in balance.
Bottom line, as real estate values go up, so will interest rates. And it will be quite some time before both are on the decline.
So, why wait? If you can afford to take the plunge, now is the time. And as one additional incentive, the mortgage deduction is still alive and well. Every day you wait is one less day you’re getting that deduction. That deduction can make a big difference.
Below is a table that shows the impact of a higher interest rate on your purchasing power. Click on the chart to enlarge it.