HOMES - BUY NOW - BUY LATER? 4/4/2009
"DELAYING A HOME PURCHASE WAITING FOR HOME VALUES
TO DECLINE COULD PRICE YOU OUT OF THE MARKET"
Ted C. Jones, PHD Senior Vice President-Chief Economist,
Stewart Title Guaranty Company February 2009
Say you are waiting for home values to decline 10%.If that were to happen, and interest rates rose 1 percent to the 6% level, then you may no longer be able to afford the same
property. Interest rates are at all-time lows and have the likely probability to increase.
Buying the same home -- Waiting for price decline.
$100,000 $100,000
Interest rate 5% $6%
Payment $536,82 $539.60
30 year fixed