Is now a Great Time to Buy a Home?
You Are Wrong. Now is a Great Time to Buy
Jeff: We’ve heard so many people say it… Now is a bad time to buy.
Sammy: Let’s take a couple minutes and debunk those myths and talk about why now is a great time to buy a house.
Jeff: But first, my name is Jeffrey Chubb, I am a retired investment banker, turned real estate agent that has sold more than 1,000 houses.
Sammy: And I am Sammy Iliopoulos of Guaranteed Rate. I am one of the top 10 mortgage brokers for Guaranteed Rate in the country.
Jeff: Alright Sammy, interest rates just hit a high point not so long ago. Give us some ah… Professional insight.
Sammy: Ha, Yes. Rates just hit a 24 year high with an average rate of 7.79%. But let's rewind a bit. The last time we saw these levels were in October of 2000. The first point to make is that what goes up, generally goes down.
Jeff: And I will point out that home prices went up in 2000! I think to understand why now is a great time to buy, we need to talk about why interest rates have gone up.
Sammy: Solid point! At this point we all know about inflation… We live it and feel it each time we go to the grocery store! The Feds don’t like high inflation. They aim for a 2% per year inflation rate. So in order to decrease inflation they need to slow down economic growth.
They do this by increasing interest rates. And that is what we have been living and experiencing...