Don’t Buy on Fear
It drives me nuts that some real estate agents post messages of all sorts, telling you to hurry up and buy because of rising rates.
They don’t understand why rates rise and why, in the long run, you may have a lower cost to purchase if rates do go up.
A rise in rates may cause a slowdown in purchases and a lowering of prices.
A mortgage can always be refinanced or payed off early. You only have one chance to buy at a certain price.
The 2013 super boom is basically over and we’ve now returned to a more stable market.
Mortgage interest rates are in a plateau. The Fed’s possible decline in MBS purchases are already priced in and replacement buyers are waiting.
Since GDP is only around 2 percent, there is no fear of a fast economic restart, thereby leading to inflation and a change in monetary policy.
Buy because you feel comfortable, not because of fear.