"I'm going to wait to buy or sell till after the election." I've heard this a few times as we enter into an election year. Yes, elections can affect many things with our economy, however, one of them is not your fixed-rate mortgage! If your concern is that rates will go down, then, of course, they could go up! Take advantage and refinance when they go down and check with your current lender as some may even offer a low or no-cost refinance.
If you're concerned about rates dropping before you buy, then you will certainly end up overpaying upfront the money you think you've saved in the first month of ownership. In tandem with my lenders, I run payment scenarios to empower my clients with the numbers they're gambling with by waiting. It is impossible to time the real estate market because you may end up with a lower rate, but now you have the potential to add say, fifty thousand dollars to your principal.
Historically, Freddie Mac since 1971 has reported a drop in mortgage interest rates during election years, and in 2024, the Fed has already announced three rate reductions! Locally, we've seen an average appreciation of 4% per year, even in years when other parts of the nation's housing markets declined. CNBC in tandem with Bank of America's New Homebuyer Insight Report in December revealed that 38% of house hunters are buying now before the flood of buyers comes into the market and creates bidding wars similar to 2021's housing market.
What is the perfect time to buy or sell a property? Why are you choosing to buy? And how do you think an election will affect your monthly payment? I'm curious to know your thoughts on any or all of the proposed questions and encourage you to like, comment, and share below!
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