As buyers try to determine the absolute bottom of home prices in their area, they may be missing out. With the low interest rates and affordable prices, now is the time to buy! Interest rates are sure to rise in the near future, so even if your dream home drops in price, with the rise in interest rates, you could be paying more per month. For example, look at the following scenario:
Alison Paoli of the Zillow blog offers three scenarios for a typical home she calls 100 Main St.:
- Buy the home for $300,000 in November 2010 with an interest rate of 4.1%: Monthly payment is $1,159.
- Buy the home for $294,600 in January 2011 with an interest rate of 4.7%: Monthly payment is $1,222.
- Buy the home for $276,924 in January 2012 with an interest rate of 5.1%: Monthly payment is $1,285.