Prices are still going up, they may not go up another ten percent but they’re going up. Interest Rates are going up and we don’t know where they will be by the end of the year.
So it may not make sense to wait and buy. In fact, it will most likely cost you more money if you decide to wait.
The picture above shows where interest rates were since the beginning of the year. Interest rates normally trade in bands. They don’t usually skyrocket up and down, but they bounce up and down within a certain band.
Since the beginning of the year up until the middle of May they were bouncing between 3.25 percent and 3.75 percent. For almost the entire first five and a half months of the year that’s where they stayed.
Then in the last month they shot up. Interest rates look to be trading in a different band now. The under four percent interest rate might be over? I hope not, but the band most are talking about, looking at Freddie Mac numbers is about 4.25 to 4.75.
That means it jumped a whole percentage point from the beginning of this year to now. Again, this is not a scare tactic, only information to show you what’s changed and the potential cost of waiting.