Are You Waiting For Prices to Drop?
Posted by NMWelcomeHome Team Associates (505) 886-1432 on Friday, August 24th, 2018 at 10:42am
We all keep hearing the same thing, the market is going to slow or have a correction in the near future. While that may be true a complete market crash is not likely and prices will most likely hold steady or decrease slightly even as interest rates continue to climb.
We know rate will go up (it has to) but if you are waiting for the prices to drop you may be taking the wrong course. Take a look at our example below...
200K @ 4.5% = Payment of $1013*. Loan cost over 30 years $364,813
178K @ 5.5% = Payment of $1010*. Loan cost over 30 years $388,367 (21% drop in price to maintain similar payment)
Rate has everything to do with cost over time. This example assumes a price drop of 10% which is not likely...so in the end it waiting could cost you A LOT MORE!
Payment example of principal and interest only.
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Some of the information contained herein has been provided by SWMLS, Inc. This information is from sources deemed reliable but not guaranteed by SWMLS, Inc. The information is for consumers' personal, non-commercial use and may not be used for any purpose other than identifying properties which consumers may be interested in purchasing.
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