There are a couple of reasons why the best answer might be the first quarter of 2010.
Mortgage rates, at about 5%, are artificially low because of a Federal Reserve program to buy $1.25 trillion of mortgage securities. That program is due to expire at the end of March. Some experts believe mortgage rates may increase one percent fairly quickly and as much as two percent by the end of the year. To have the same monthly mortgage payment with a one percent higher rate you would need a purchase price about TEN PERCENT LOWER. So waiting for lower prices may be a fool’s errand.
The first-time homebuyer/move-up homebuyer tax credit is due to expire with homes under contract by April 30th, and that close before June 30th. Detailed information on who qualifies can be found here, and you can learn more information from the video below.
So if you’re thinking about a home purchase in the next few years, it’s at least worth having a look now.
Posted by:
Brian Hays
