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Don't Wait for Rates to Drop More: Here's Why Rates are more than 1% lower than last year. I wanted to share three key risks of waiting for interest rates to drop further before purchasing a home: 1) Home Prices May Rise Goldman Sachs projects a 4% increase in home values by 2025. If rates drop, affordability could improve, pushing prices even higher. 2) Increased Competition The Mortgage Bankers Association (MBA) reported that purchase applications increased for six straight weeks between August 15 and September 30, following a recent rate dip. More buyers could mean more competition. 3) Less Room for Negotiation As rates decrease and competition heats up, sellers are typically less willing to negotiate prices or offer concessions, making it harder to strike favorable deals. Right now, before winter may be the best time to negotiate terms on homes that sellers need to part with. Consider the benefits of negotiating in the off-season. If you'd like to discuss how to make the most of the current market, I'd be happy to help you kickstart your home search. Let's connect! |
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