I spoke with someone last week about selling their Viera, Florida home. They have been on the fence for some time. They, like most sellers, want more money for their home.
Their goal is to purchase a larger, newer home. They have equity in their home although not a great deal.
They remain on the fence.
I left them with this question: Is it worth holding off selling your home until prices get higher when the cost of the replacement home will be higher as well?
Home prices have been increasing lately. This is likely tied to the shrinking inventory in Brevard County, Florida.
Mortgage rates continue to be near all time lows but for how long? Average rates on fixed mortgages went up this past week for the third
consecutive week. Freddie Mac reported the 30-year loan rate increased to 3.62%
which was a little higher than last week’s 3.59%.
As mortgage rates increase a borrower's purchase price decreases as well as the total obligations will climb. [Lenders calculate and use a borrower's total obligations and housing costs to determine loan approval limits.]
With increasing home prices and low mortgage rates move up buyers should give a lot of consideration to making the sell/buy decision soon. The question to buy now or later is especially important for those who are renting right now as well!