Recent Mortgage Rate Volatility... What It Means For Home Buyers Bargain Hunting...
Are you currently bargain hunting?
Are you shopping all areas that you are interested in several times over?
Are you under the impression that home prices in your area will further decline?
Are you haggling over every little thing with the sellers?
Are you trying to squeeze them ever so much more?
Are you passing up on homes you really like just because you couldn't get another couple of thousand off?
Well, while everyone loves a bargain, just make sure it doesn't backfire on you!
Mortgage interest rates have not been too stable for a long time now. When checking the graphs you can see there has been quite a large change in the past 3 months. The range is about .20% which adds up taking into consideration houses/condos purchased at or above $300,000.
The rate volatility will most likely remain for the foreseeable future because there seems to be an upward pressure on rates which is however somewhat tempered by less than stellar economic news.
Nevertheless, if you are in the market for new home watch rates closely... remember, rates are much more important long-term than saving a few thousand off the purchase price short-term. Saving $10,000 off the purchase price of your next home is meaningless when you are ending up locking in at higher rate costing you thousands of dollars in additional interest.
So, keep an eye on the rates...