Local Government TV

▼

Wednesday, September 10, 2008

Is Now a Good Time to Buy?

That's what realtor and frequent commenter Chris Miller thinks. "Yesterday interest rates dropped to 5.7%. How long this will last I do not know. If you are thinking of buying or selling it might be a good time to get a CMA. We have a lot of homes on the market at this time and buyers are looking at lots of homes. They, of course, are looking to see if they are buying in at the bottom. "
at

8 comments:

  1. AnonymousSeptember 10, 2008 at 6:57 AM

    Probably best to see who wins the election. Obama will raise everyone's cost of living by jacking taxes in a soft economy to make his wife proud to be an American for the second time in her life. Let's get past these two first.

    ReplyDelete
  2. AnonymousSeptember 10, 2008 at 7:39 AM

    I think Chris is right, but anyone buying now has to look at things from a long term perspective - property values are not going to spike up, they'll bump along for awhile and then gradually increase. If you're a short term investor, don't do anything.

    The Banker

    ReplyDelete
  3. Geoff BraceSeptember 10, 2008 at 8:05 AM

    how many points does somebody need to pay for that interest rate? I only ask b/c while it might be a great interest rate, if it has 2 points required to get it, then it might be a fairly high entry point for some first time homebuyers.

    I'm of the mind that it is never a bad time to buy a home (as opposed to a building to make a quick buck).

    ReplyDelete
  4. Bernie O'HareSeptember 10, 2008 at 9:32 AM

    Geoff,

    I don't know about points. idf Chris sees this, he can respond.

    Banker,

    I've been reading that you're a figment of my imagination.

    ReplyDelete
  5. Bernie O'HareSeptember 10, 2008 at 9:34 AM

    Anon 6:57,

    It's interesting to see how presidential elections have such an impact on things like a decisison to buy a home. I think Iraq is a big factor, too. A lot of people are being shipped off or are concerned about being shipped off and are reluctant under those circumstances to buy.

    ReplyDelete
  6. Chris MillerSeptember 10, 2008 at 9:50 AM

    Banker
    Thanks for the compliment and I agree with you on the spikes in the market. I believe it will be a while before we see double digit increases in home prices.
    As to points, if I remember corretly you can buy that rate for 1 point. Keep in mind that if you find the right buyer you can gain some concessions from them and that includes paying some points

    ReplyDelete
  7. AnonymousSeptember 10, 2008 at 10:25 AM

    Lots of different subtopics here -

    On points, think of them as nothing more than a fee you pay for a lower interest rate. Simply do the math on what your payment would be with and without points, how quickly you will recover the cost (the point), how long you plan on being in the house, whether you plan on refinancing anytime soon (i.e., for college expenses or major home improvements) etc. and make your decision! As you see, there's alot there, a good lender will walk you through the analysis so that you make the right decision.

    If as Geoff asks you are a 1st time homebuyer and funds are tight, you can get a 30yr mortgage w/ 0 points for about 6% or so today. In addition to what Chris said re seller concessions, you always want to ask your lender about 1st time homebuyer specials or other discounts, most lenders offer them.

    And on the figment comment, damn Bernie, you were caught again!

    The "Figment of Bernie's Imagination" Banker

    ReplyDelete
  8. Geoff BraceSeptember 10, 2008 at 10:53 AM

    I was just curious. Thank you to Chris and The Banker.

    ReplyDelete

You own views are appreciated, especially if they differ from mine. But remember, commenting is a privilege, not a right. I will delete personal attacks or off-topic remarks at my discretion. Comments that play into the tribalism that has consumed this nation will be declined. So will comments alleging voter fraud unless backed up by concrete evidence. If you attack someone personally, I expect you to identify yourself. I will delete criticisms of my comment policy, vulgarities, cut-and-paste jobs from other sources and any suggestion of violence towards anyone. I will also delete sweeping generalizations about mainstream parties or ideologies, i.e. identity politics. My decisions on these matters are made on a case by case basis, and may be affected by my mood that day, my access to the blog at the time the comment was made or other information that isn’t readily apparent.