Jeremy Dean is here to give a lender’s perspective on our current market.
The magic question for many right now is, “What’s going on in the real estate market?” Jeremy Dean from Legacy Mutual Mortgage is here with me today to discuss the financial aspects of it.
Interest rates are changing almost daily. We’ve seen a large increase in rates in a short period over the last 90 days, which has some people worried about what’s happening. Though we predict that rates will continue to rise over the next 24 to 36 months, they won’t do so at such a rapid pace. Also, as more inventory hits the market and buyers have more choices, homes may become a little more affordable.
However, since we know rates are likely to continue trending upward and so will home appreciation, the best time to buy is now. For example, if rates climb 1%, you’ll pay about $350 more per month on a $500,000 loan.
“Interest rates are changing almost daily.”
Even though we’re giving buyers this advice, some are saying they still want to wait a year and see what the market does. In those cases, Jeremy will usually show the buyer a total cost analysis to demonstrate what would have happened if they’d bought a year ago. He presents what their net worth would be now if they hadn’t waited and what their net worth will be a year from now if they buy right away. He proves to them that waiting can truly cost you.
Jeremy is always available to answer questions or discuss your financial situation and help you make good decisions. He’s a wealth of knowledge, so reach out to us, and we can put you in contact with him. Also, call or email us if you have any real estate questions, and let us know what topics you want to hear about in future blogs, who we should interview, and which questions we should answer. We’d love to hear from you.