There is alot of talk about interest rates and where they are headed.  All indications appear that rates will creep up while single home prices have started to stabilize in Panama City and the Beaches of Florida.

The average sales price in Panama City, FL is approximately $175,000, for that you get a nice, maybe new, 3 bedroom, 2 bath home in a nice neighborhood.

At 5% interest rates, your payment without taxes and insurance would be approximately $875.00
At 6% interest rates, your payment without taxes and insurance would be approximately $1050.00
That is a 20% increase in payment or a small car payment, utilitly bills or better yet, it would be the taxes and insurance payment each month.

Don't fall into the trap of timing the market to try to get the best deal.  If you wait and rates go up, you could lose out on a great home and lose alot of money too!
Let's assume that rates rise 1% in the next 6 months and home prices drop 10% in the same time, you wait it out and get a great price on a great home, that $175,000 is now $157,500, GREAT DEAL?  Wait, interest rates rose by 1%.  Did you save money by waiting?  Let's take a look.
$175,000 at 5% over 30 years=$875.00 per month
$157,500 at 6% over 30 years=$945.00 per month

Interest rates rising STEALS your buying power, you may just qualify for less house in 6 months from now than you would today.

In summary, the dangers of timing the market are:

  • rising rates can take away buying power
  • you may miss the home today that you really want only to qualify for less in 6 months
  • the only way to tell when the market has hit bottom is when prices trend upward, then you REALLY LOSE if prices and rates go up

Call The Payne Group TODAY for a free, no hassle consultation, we have a team of professionals to look after your every need. 

Jeff Payne
850-890-0132
jeff.payne@kw.com