If you are confused, I understand why. So many things are going on in our world right now that can and probably will have an impact on the housing market. Whether or not that impact is good or bad.. who knows.
INTEREST RATES
Are these low interest rates here to stay? They possibly may be, at least for a while. This information from Freddie Mac makes it appear they are. We are currently at a 21-month low on interest rates. The interest rate that you are obtaining when you purchase your home has a great impact on your monthly payment. Therefore, the lower the interest rate the lower your monthly payment.
BUILDING MATERIAL
All this talk of the tariffs could make a difference on the cost of building material to build a home. According to a recent article, the National Association of Home Builders reports that as much as $10 billion in goods imported from China are used in home building. Depending on the outcome of the tariff and trade discussions between several countries, there could be as much as a 25% boost in the cost of building materials therefore raising the price of homes.
WHAT ARE THE ECONOMISTS SAYING
Here’s where some real confusion is. At the beginning of the year you heard from economists that a recession could come in late 2019 or early 2020. Then a few months later you heard that it would be pushed to past 2020. Now here you are again, only in mid year and we hear it could begin in the next eighteen months.
MY TAKE ON IT ALL
That is to say, in other words, we are still in a strong market. There are some new homes beginning to pop up and resales are coming on the market as a result prices may come down a bit. The interest rates are awesome! ( I don’t mind saying, I remember buying our first home at an interest rate of 11 3/4%. And we thought we got a screaming deal! It came down from 13%.)
Wow! If you weren’t confused before I bet you are now. Confused or not bottom line is.. It’s still a great time to buy.
Ready to look for a home anyway? Check out these homes