Mortgage Interest rates have risen a minimum of .5% since the market lows set back in October 2010. Since then rates have been trending up. Keep in mind that just a .5% increase in mortgage rates is like adding $15K to the price of your next new or existing home. Add in another expected .5% rate increase to 5.1% later in 2011 and the home you buy will feel $30K more expensive than if you purchased the same exact home back in October 2010. Now add in forecasted material price increases and you have what many are now saying will be the new pricing reality of the next 18 to 24 months especially for new construction.
Obviously the moral of the story is contracting you new home sooner will be the best way to avoid higher costs. Cupid thinks So.
No comments:
Post a Comment