Is now a good time to buy?

While the Feds continue to pass higher rates until inflation eases, many consumers are putting a hold on their decision to purchase a home, surpassing home prices as the top reason.

Here is another thought: Everyone is aware of the "bidding war" that took place for years while the interest rates were at historically low. As a result many had to offer way more than asking price and still had their offer rejected!

Sellers Concession is another negotiating tool that was almost obsolete and now it is back on the table.

While interest rates are a significant portion of the mortgage payment, now the negotiations are not entirely in favor of the seller, thus making it fair between the two parties. The most important thing to take into consideration is securing the right property now, refinancing it later when rates go down OR when you have enough equity to eliminate PMI(Private mortgage insurance). PMI is a type of mortgage insurance you might be required to buy if you take out a conventional or FHA loan with a down payment of less than 20 percent of the purchase price. PMI protects the lender—not you—if you stop making payments on your loan.

Another thing to take into consideration is the uncertainty that interest rates will indeed go down any time soon. Historically rent prices follow mortgage monthly prices with the disadvantage that it has no return of investment or tax breaks.

I love to educate and share ideas, so if you have any questions I will always make time to answer them to the best of my knowledge :-)