Derek Baker

Don’t wait for lower rates to buy.

There’s a good chance rates may be dropping in the not-too-distant future based on a slowing economy, moderating inflation and a weakening job picture. It’s also likely the Fed will be forced to start cutting rates.

So, should you wait for rates to decline before making your home purchase? The answer might surprise you.

As rates move lower, more buyers will become eligible to purchase. In fact, the National Association of Realtors states that for every 1% decline in mortgage rates, 5 million more people can be eligible to buy.

Even if a small fraction of these eligible buyers decides to move forward, it will likely pressure prices higher and shrink the number of available home choices even further.

The advantage of buying ahead of a drop in rates is that you can capture the substantial benefit of appreciation, then refinance to a lower rate once they come down. However, this does come with a cost.

The added temporary interest expense along with the cost to refinance must be considered. When you weigh it against the much greater benefit of appreciation, the choice may become clear to marry the home today, while dating the rate in the interim.

I have the tools to allow you to evaluate what the forecasted appreciation is on the home you’re looking to purchase and weigh it against the temporary interest expense to see if it makes sense for you.

Contact me for a free quote at 801-842-4848 or visit my website: www.DirectMortgage.com/DerekB for calculators, resources or to get started to obtain a loan pre-approval.

Grateful,

Derek Baker - Mortgage Loan Advisor - NMLS # 1952172
Direct Mortgage, Corp – NMLS # 9612
6955 S. Union Park Center, Ste 540, Midvale UT 84047
C: 801-842-4848
[email protected]

Currently structuring home loans in Utah, Alaska, Arizona, Idaho, Wyoming, Florida, and Georgia.

License #'s: AK-AK1952172, AZ-1034048, FL-LO108748, ID-MLO-2081952172, UT-11838912, WY-102650, GA-1952172