Buyers are still concerned about the uptick in interest rates. This concern has caused many buyers to postpone their home search - losing out on home ownership and building equity.
In my opinion, we are dealing with a "double edge sword" situation. Buyers do not want to buy because interest rates are too high, which in effect, will increase the mortgage payments. However, if buyers wait for interest rates to go down, then homes prices will go up, leading to more competition, higher home prices, and possibly the inability to get into a home. The question is, will this really lessen your mortgage payments if you are buying a higher priced home?
If Buyers can secure a home now, with less competition, make the sacrifice for the short term, and then refinance when interest rates go down, do you think you would be in a much better position?
With the talk of high interest rates, I wanted to share this headline, in the San Jose Mercury News, dated September 16, 1982. Let's be thankful interest rates are not at this level!
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