Is it a good time to buy?  It is always a common question. Even more so now with rates a little bit higher (more on that in a minute) and with prices slowing.

Right off the bat let me say that the best time to buy is when YOU are ready! When your finances and income are in order and stable.  When you have adequate down payment and savings then it might be the right time for you to buy.  Don't try to time the market.  Buy when you are ready!

There is an old adage that I firmly believe in, that is "Don't wait to buy real estate. Buy real estate and then wait!"

So todays rates are more or less in the  7% range.  Yes, those rates are higher than in the last several years but historically it is about average!

"What is a historically normal mortgage rate?

The long-term average for mortgage rates is just under 8 percent. That's according to Freddie Mac records going back to 1971.

So right now rates are more or less about average.

I do believe that over the next year or two that rates will go down a little bit but right now prices are still increasing.  So in a year or two you might get a better rate but you will pay more for the house.

Over the last year the prices in metro Atlanta have gone up about 5% and the average sales price is now just over $500,000. So now at that rate a year from now that same home would be $525,000 and in two years it would be over $550,000.

So follow the math.   Today's $500,000 home with a 20% down payment leaves $400000 mortgage at 7.25% which is a payment of $2728.71

2 years from now that is a $550,000 home with 20% down at maybe 6%(we hope) that leaves a mortgage of $440,000 with a payment of $2638.02

So yes, your payment would be about $90 lower.  BUt is would require an additional $10,000 down payment. Between now and 2 years from now you would save about $2200. BUT IF YOU BOUGHT TODAY THEN YOU WOULD HAVE $50,000 IN EXTRA EQUITY!!!

BUY WHEN YOU ARE READY!

DON'T WAIT TO BUY REAL ESTATE!

BUY REAL ESTATE AND THEN WAIT!