According to an article in the April 2011 issue (PDF) o The Costco Connection, now is the time to buy a home, as the likely rise in interest rates predicted for the near future may entice buyers from the sidelines and push residential real estate sale prices up.
As long as rates remained stable, potential buyers and sellers could afford to remain indecisive. Although rates are still near historic lows, people are motivated to take action since waiting could mean a higher rate and a larger mortgage payment, experts say.
Yes, mortgage interest rates are still low. But because of the foreclosure crisis, it’s not as easy to get home loans as it once was and may get harder in the future. It is best to get the process started as soon as possible.
New and pending regulations in response to the mortgage lending crisis mean new loans and refinancing will be more complicated, more time consuming and more costly. Expect higher fees, higher mortgage insurance payments and bigger down payments.
Not enough incentive? Expect to see fewer and fewer 0% to 5% down-payment loans. Think more like 10% to 20% down. Such is the future of the mortgage lending practices, so it’s a good idea to get on it now while interest rates are still low.