SAHBA Home Hints
June 24, 2007
Interest Rates Are Low, Now is the Time to Buy
Deciding to buy a brand new home and stop renting is a big step for many. If you're thinking about buying a brand new home, now is the time because interest rates are low, prices are competitive, and some builders are offering incentives and financing options.
Today's housing market is a completely different animal from the one just a few years ago. But with change, comes opportunity. Market economics are creating an excellent environment in which to buy a brand new home. Thirty-year fixed mortgage rates currently stand at about 6.625% and are extremely favorable for buyers. Compared to 20 years ago, they are near historic lows.
“Right now, it is a buyer's market. Inventory is high and sellers “need” to sell,” said Erin Fitzgerald, Builder & Resale Division Account Manager at First American Title Insurance Company. “Interest rates are low and loan programs are competitive for allowing first-time homebuyers to qualify.”
Waiting to time the market could be dangerous. Because interest rates are near historic lows, it is much more likely they will head higher in the future as opposed to moving lower.
“In short, the smartest and safest time to buy is now. We know interest rates are low today. We know that home prices are down,” said Fitzgerald. “Next year is an election year, and it could pose for some uncertainty in the market place.”
Low interest rates aside, there are other advantages to owning your own home over renting.
“Renting has no rate of return, investing in real estate does,” said Fitzgerald, a SAHBA member. “An investment in real estate will ultimately have a higher rate on return versus renting, where the money goes nowhere.”
Not only are you saving money, but owning a home can give you a sense of pride.
“Being a homeowner is one of the greatest gifts you can give you and your family. It brings you much more than you could ever expect,” said Fitzgerald. “To know that you are building equity for your future is just the beginning of your financial dream.”
Details: Fitzgerald at (520) 203-3444.
SAHBA represents about 750 member businesses and 40,000 jobs serving the residential construction industry in Pima and Cochise counties.
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