Opportunity Seldom Knocks Twice…or so the old adage says. For today’s homebuyers the sound of opportunity knocking may soon fade away.
According to an article recently published in the Star-Ledger, “Though New Jersey home prices are expected to continue falling for a few months, a recent spike in mortgage rates may wipe out any savings buyer manage to wrangle from sellers.”
The story also quotes Jeffery Otteau, president of the Otteau Valuation Group who notes, “ For those that are still waiting, they’ve already missed the perfect moment when prices were low and interest rates were also low.”
According to Clark Atwood, a vice president at Baker Residential, the window of opportunity may be starting to close, but this is still a historically great time to buy.
“Predictions that the housing market has bottomed out coupled with recent rises in interest rates suggests that the market is trending up. However, with 30-year mortgage rate still hovering in the mid-5% range and prices continuing to slip lower, buyers who move quickly can still take advantage of nearly unprecedented home values,” Atwood explains. “At Baker Residential we still have value priced single family homes and townhomes in markets throughout New York, New Jersey, Connecticut and Pennsylvania. Qualified buyers can take advantage of FHA Financing that allows 3.5% down payments at some communities and $8,000 first-time homebuyer tax credits. Valuable builder incentives area also offered throughout our portfolio of communities.”
While good values are still plentiful, experts seem to agree that buyers are well advised to seize today’s opportunities. Since rising mortgage rates are based on ten-year treasury bills, they have very little to do with activity the housing market. Inflation, oil prices, the security of government debt other economic factors influence the price of mortgage money and therefore the affordability of homes.