"It is a big deal to buy a house. But if you do your homework and have the right documentation ready, this could be a great time to buy a home for many reasons," says Jay Plum, executive vice president of Huntington National Bank, in Cincinnati, Ohio.
Why are rates rising? Well, one huge factor is that the feds will start raising rates about six months after they stop buying mortgage bonds, which is projected to happen sometime in 2015, says Plum.
"[Rates] probably won't start shooting up quickly. But a quarter of a point on an interest rate can mean about $100 more each month on [a homeowner's] loan. For a lot of families, that can make a big difference," he says.
When talking to people about the current real-estate market, everyone immediately thinks oh what a great time for sellers! While this may be true, its also a great time for buyers! We are in a very competitive market but buyers are still getting low interest rates and can purchase before the prices really go up. Spring and summer are the best times to buy, buying is still cheaper than renting in many areas, and credit score requirements are not as tough as they have been. Timing is everything in so many situations and this is one of them. Buyers should be taking advantage of these conditions, waiting could cost you!
Jason Moon Real Estate Broker with ColdWell Banker Bain. Seattle, WA