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Does buying in an election year make sense? I feel like the rates are so unpredictable. WOnderinginf thats due to the election or the pandemic or is it typically like this?

by boein336 from Bryan, Ohio. Oct 28th 2020 Reply

Bert Carpenter (BertCarpenter)
#1 ranked lender in Arizona - 2,423 contributions

The question you should be asking yourself is... Why shouldn't I be buying now. In many markets, values are up significantly over the last year. Rates are lower, not because it's an election year, but because the Federal Reserve has set the Fed Funds rate so low, in part because of the pandemic. This rate tends to guide the yield expectation of the bond market. Let's say, your market has averaged about a 5% annual appreciation rate over the last few years. Rates today are in the high 2s. How would you feel if you passed now and waited until next year to buy? That $250,000 house you were going to buy in November 2020 now costs $262,500 and if rates climb only a half percent from say, 2.75 to 3.25%, your new payment would be $914 instead of $816. So by waiting, you give up the appreciation of $12,500 that could have been yours, you are stuck with a payment that is $98 more per month, plus you lost the use of the Rent you paid to your landlord over the last year. If you lived in this new home only 10-years, you will have given up over $24,000 in lost equity and additional interest paid...Ouch. I wouldn't wait. What are you going to do? ~ Bert Carpenter, The LoansA2z Team of NEXA Mortgage ~ NMLS 40586 ~ Licensed in Arizona, California, Georgia, Oregon, and Washington. Need help in other states? We've got you covered. NEXA Mortgage is licensed in 46 states ~ 480-889-9000.

Oct 28th 2020
Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,719 contributions

I've been lending a long time. I've never seen an election year swing in the markets good or bad. Glass half full or half empty is in the eye of the beholder? Interest rates have been extremely low for the past 7-months in part because of COVID, and 'expert' predict rate will start rising as the pandemic fades. Homes are selling in just days. Values are up dramatically the past few years, including since COVID. One never knows, but all indicators are you should buy ASAP. I lend in MN WI IA SD ND. Find me at - NMLS274132

Oct 29th 2020
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