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Is this the right time to buy a first home or Is it too late with the mortgage rates?

  • December 05 2013 - Irving
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Answers (14)

Rates have been held artificially low by Quantitative Easing.... The Fed is buying mortgage backed securities. The Fed has announced that they intend to pull back on their purchases.... This means rates should start going up soon.
While anything can happen.... Rates are very, very likely to be higher next yr.
This, with home prices on the rise....... It is a great time to buy!!!!  Regardless of what others will tell you.
  • December 06 2013
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Ignore anyone giving you a blanket "It's a great time to buy.." answer.  They don't know which way rates and/or prices are going any more than you do.

The answer to this is always dependent on 1) your personal situation (... is it a good time FOR YOU to buy?) and 2) the individual property (... It's NOT the right time to buy overpriced homes!), and the local market (.... Detroit is different than CA or DC...).

Research, research, research.

Good luck!

  • December 05 2013
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Profile picture for Lakefrontmike
The time is still good, rates are still low. Home prices are holding steady.
  • December 05 2013
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This is a WONDERFUL time to buy your first home!  Interest rates are actually  still quite low.  I remember the 80's when they escalated to 18%!  Home values are amazingly good right now, but listings are scarce, so if you find a home you really like, don't hesitate as they aren't staying on the market long and most homes are seeing multiple offers.  Make sure you get pre-approved before you go out to look so that when you find that dream home you will be ready to act quickly.
  • December 05 2013
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Profile picture for amandawycoff
It is absolutely a great time to buy! Rates are still great! And, if you are a first time home buyer there may be some grant money you could qualify for! In addition, because of the holidays and the temperatures dropping (at least here in Illinois), the sellers are most likely very ready to sell and a little nervous that they won't sell over the winter! So, you may be able to negotiate yourself a better deal now as opposed to the spring and summer time when there are more buyers looking! :-) Hook yourself up with a great Realtor and have fun shopping!!!
  • December 05 2013
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Absolutely agree with all the above posts,  it is as good a time to buy as it has ever been. Rates are still great overall - I would reach out immediately to a well reviewed lender (check out the "find a pro" search above) and get your application and pre approval process started. Then, do the same to choose an agent and start shopping! Good luck!
  • December 05 2013
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Although rates have been lower within the previous year, they are still low today. It would be wise to take advantage of these historically low rates. The key thing to realize is that you should make that your finances are strong enough to support a mortgage and new home. Low rates should not be your only deciding factor when buying a new home. If you are truly interested in buying a home the best thing for you to do is to speak with a lender directly to see if you can get started on financing a new home with your situation. There are lenders like myself that would be glad to speak with you to help you get the loan that you need. Well I hope this helps! If you have any further questions or if you would like a loan, feel free to contact me.

Good Luck!
  • December 05 2013
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The 40 year average is about 9%.  Today rates are likely in the 4-5% range.  Still very much at historical lows.
http://www.trulia.com/blog/joe_manausa/2010/06/are_mortgage_lenders_just_crying_wolf

No one can predict the future though, but I think most people would agree that rates will likely rise over the next few years.
  • December 05 2013
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It's always the right time to buy. Who knows what the future is going to bring, let alone if today is a better day to buy than tomorrow which might not be as good as yesterday. If you are in the market to buy and you find a house you like and can afford then it is the time to buy. Don't over analyze it.
  • December 05 2013
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The current mortgage rates are still historically low and it is still a great time to buy. Forecast say that next year loans should be more easier available, a steady inventory but interest rates could rise. 

Good luck to you and if you have any questions please let us know.

Annett T. Block
[Contact information and website removed by Zillow moderator. Please see our Good Neighbor Policy for information.]
  • December 05 2013
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For a bit of historical perspective, take a look at this chart here.  While 3.5% might be gone for awhile, we are at historic lows!  Don't allow rates to scare you away; as stated before- no one knows what's going to happen.  Buy when you're comfortable and ready; values and rates notching up are actually a good sign from an economic perspective.
  • December 05 2013
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Profile picture for kapyarets
The currents mortgage rates are historically low. They are higher than last year but it's still very low. The market is improving in many ares in the country, so the prices may be going up as well pretty soon. It's a right time to buy.
  • December 05 2013
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I agree with Bruce and will add that the rates right now are still at all time low's. Will they ever go back down to 3.5% on a 30year ? Possibly but not within the next 3 years . Rates are rising there is no qquestion about that but depending on qualifying factors the avergae on a 30 year fixed is still around 44.625 / 4.75 which is still very good.

Good luck!
  • December 05 2013
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Nobody knows what is going to happen with interest rates so don't let someones prediction hold you back..  Let the rich and financial players worry about the moving of interest rates up or down. The right time for you as a home buyer is to buy when you are ready financially, buying matches your goals, and you find the right home.

best of luck .. Bruce
  • December 05 2013
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