Surprising numbers of potential homebuyers are holding off on buying Santa Cruz homes. They see the housing prices drop and are waiting for them to go lower. They see the mortgage rates and are waiting for them to drop further. If this is you, you might want to rethink your strategy and take a real look at potential Santa Cruz homes.
Here are two crucial reasons why you might not want to wait any longer:
1. Interest Rates on the Rise - Thanks to the Federal Reserve buying $1.23 trillion worth of mortgages, interest rates have been kept somewhere between 4.93% and 5.09% for a 30-year fixed-rate loan. That’s about 0.4 % lower than it might be without the Fed’s help. However, by the end of 2009, the Federal Reserve had already started implementing a phase out of the mortgage program. With the Fed program closing at the beginning of this month, it’s not a question of whether mortgage rates will rise, but when, how much and how fast. The experts don’t expect them to climb very high, stopping somewhere between 5.5% and 6% by the end of 2010.
2. Lower Home Prices - Home prices, predicted to drop another 5% in 2010, will also make some difference in overall cost. Putting the falling home prices together with the currently low interest rates, you still have a chance to get a great home at a great deal – for a little while longer.
Instead of waiting for lower costs that may never come, consider where you are now:
• Do you have good credit?
• Are you pre-approved (not pre-qualified) for a mortgage loan?
• Do you know how much home you can afford?
• Are you certain (or as certain as you can be) of your job stability?
It’s very possible that the market will never be better than it is right now for buyers. It’s a buyers’ real estate market, with the scales tipped to make homeownership as cheap as it can get. If you can afford to buy now, but are waiting for things to get even better, reconsider – you might wait yourself into a market you can no longer afford!
Ready to take advantage of this buyers’ market and purchase one of the Santa Cruz homes for sale? I can help. Call me today at 831.662.6522 or email me at Lauren@LaurenSpencer.com for more information.