Local broker says it’s better to buy a house now than to wait
BIRMINGHAM, Ala. (WBRC) - Like most things nowadays, home interest rates remain high and houses remain expensive. So the big question is should you buy now, or try to wait it out?
While it always depends on each individual’s financial situation, Jeremy Miller with LocAL Realty says if you’re thinking about buying a house, go ahead and do it now.
“The longer you wait, the more money you’re going to cost yourself,” said Miller. He is the owner and broker of LocAL Realty.
Miller says he is seeing government loans with interest rates around 5.75 to six percent as the best case scenario. He has also seen rates for conventional buyers between six to six and a half percent.
For years, Miller says the rates were expected to grow.
“Having been in the mortgage industry before, I’ve seen interest rates in the six to eight percent range so we were thinking it was going to move a lot more in the last five to years and it never did,” he added.
Now that rates are moving up, some people are starting to slow down their house hunt. Miller says they shouldn’t.
“Interest rates could potentially keep rising, but also we anticipate that home prices are going to continue to do the same thing,” said Miller. “They’re expecting, on average appreciation, about eight to 8.5, nine percent of market appreciation just over the next 12 months and that’s strictly speaking because we’re so short on property available to sell buyers.”
Basically, whether or not interest rates change, homes will continue to rise in value.
Even if the rate eventually drops, Miller says there’s an easy solution.
“If you buy now and the interest rates drop down five percent, you can pay a small fee to your lender and refinance,” said Miller. “It’s a very simple process.”
So if you were planning on waiting until interest rates drop, Miller says you’ll end up paying more in the end anyways. He says based on data, now is the time to buy.
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