Is Now The Time To Buy?
By Beth Braverman, staff reporter – Money Magazine
March 2, 2010: 10:30 AM ET
If you’ve been holding off on a real estate purchase, glimmers of a turnaround in the housing market may have you wondering if it’s finally time to make your move.
Is Opportunity Knocking?
While home prices remain low, they’re no longer free-falling in most markets. Mortgages are historically cheap. And the sweet tax credit that was offered to new buyers last year has been extended to April 30 and expanded to include current homeowners too.
Besides the loss of the tax credit, the biggest game-changer facing buyers is a potential jump in mortgage rates.
If the Fed moves ahead with its plan to stop buying mortgage-backed securities at the end of March, the rate on a 30-year fixed mortgage is expected to increase nearly a percentage point from today’s 5.18% to 6.1% by the end of 2010, according to the Mortgage Bankers Association.
On a $300,000 fixed-rate mortgage, that’s an extra $174 per month.
