With the slow down in the economy, many folks seem to be afraid of purchasing a home today.
Do you have friends telling you that the prices are still coming down, so you should wait?
Do you have friends telling you that real estate is no longer a good investment?
So, why should I buy now rather than waiting?
While the prices of homes may not have bottomed out, interest rates are on the rise. If you wait for the prices to go down, but the interest rate keeps going up, you are not making any progress.
Take a look at the charts here (obtained from the KCM blog). As you can see from the chart on the right, rates are on the rise -- and then you can see from the chart below what impact the interest rate has on your monthly cost for a loan.
If you are waiting for the prices of homes to fall, take a second look at what the increase in interest rate will do your monthly cost.
You will want to speak with a mortgage professional before you make a final decision as to the cost to you for purchasing a home.
Remember the old saying that one "should buy low and sell high"
The Fannie Mae National Housing Survey shows that the four major reasons people buy a home have nothing to do with money: