FireDream

Time is Running Out to Get the Perfect House

Just last week in my blog I suggested that now might be the best time to take advantage of low interest rates.  While the Fed hasn’t made any adjustments in the federal funds rate, and is unlikely to do so until early next year according to market experts, interest rates have already begun to edge up.

An AP article references a recent Freddie Mac report that indicated interest rates have slowly moved up to the highest in nearly nine months.  Just last week, interest rates on 30-year fixed mortgages climbed one tenth of one percent.

Given this new report, I’m once again on the buy or refi bandwagon.  Call me crazy, but even with all of the news babble (see my April 29 blog) about recessions, foreclosures, famine, pestilence, locusts and just about everything else, I still think that for many folks out there, real estate is just about the best long-term investment you can make.

Here in North Texas, existing home sales dropped by 12 percent in May according to North Texas Real Estate Information Systems and the Real Estate Center at Texas A&M.  But what’s really interesting is that residential inventory (i.e. number of homes for sale on the market) has also decreased by 10 percent and home prices actually went up slightly.  In other words, there are fewer houses for sale and the ones that are appear to be selling for more.

If these trends continue and as interest rates adjust upwards, you may lose your competitive advantage to get the home you want for the price you want.  If you’ve thought about buying, it’s probably time to do more than daydream.  It’s time to take some action.

This blog is intended for informational/entertainment purposes only and is not meant to provide any financial or legal advice.