Many buyers are sitting on the sidelines waiting for home prices to drop or bottom out. While they've been watching prices, interest rates have gone up half a point in the last three weeks.
For example, three weeks ago a principal and interest payment of $2,000 would have qualified you for a $342,000 home at 5.75%. At today's rate of 6.25%, that same $2,000 principal and interest payment now qualifies you for only $325,000.
You've lost $17,000 in purchase power and it is unlikely that the home's price has dropped by 5% in that same three weeks. In the last year home prices in King County dropped .2%, and in Snohomish County prices actually increased by 2.4%.
As an Integrated Agent at The Real Estate Group, I am both a Real Estate Agent and a Loan Officer. While I can save you some money during the real estate negotiation, it is likely I can save you even more when I help you obtain financing. I will search for the best loan program to maximize your buying power, and I will keep an eye on rates each day and do my best to lock you in at the lowest rate available.
Home buyers are in their strongest negotiating position in the last 5-10 years. Don't wait any longer. You can't afford to.
