In the dynamic world of real estate, many prospective homebuyers find themselves at a crossroads when considering their next move. A prevalent belief is that waiting for interest rates to fall will provide better purchasing power, but this strategy might not be as beneficial as it seems.
As housing markets continue to evolve, the interplay between interest rates and home prices suggests that waiting for rates to drop could lead to missed opportunities and potentially higher costs in the long run.
Interest rates and home prices have an intricate relationship. Generally, lower interest rates make borrowing cheaper, which can increase demand for homes. When demand rises, so can home prices, as more buyers compete for the same inventory. Don’t let the cost of waiting for a 0.25% drop in interest rates cost you $25,000 more in the purchase price of a home.
Instead, remember this statement: “Marry the house, date the rate!” Gershman Mortgage is now offering to waive the $1,095 application fee on a refinance if you use it for a home purchase (restrictions may apply).
However, if you have clients who are on the fence about making a move, buying now could save them thousands in the purchase price compared to several months from now. For a full cost comparison analysis, contact Andy Schoemehl at 314-221-7797.
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Andy Schoemehl | Vice President |
