Trump Says Keep Rates Low!
Have you checked the news lately? President Trump is annoyed with the Federal Reserve for raising interest rates. Gotta appreciate a president rooting for best time to buy a home is August.
Low Rates Impact Monthly Costs. And Add Up!
Were you aware, your potential new monthly home mortgage payment has been steadily increasing. Since the start of the year, and until just recently, monthly mortgage home rates are up. Rates actually fell off a little this month and are now holding steady in the mid to high 4’s.
Get Pre-Qualified Now.
While it always pays to first know what you qualify for, now is a good time to revisit your home buying opportunity.
Compared with historic financing costs, rates remain low. However, we are significantly higher than a few years ago as the nation emerged from the Great Recession.
Still, 4.59% is a good rate – and this is the rate several lender associates are sharing with me this week just in time to take advantage of best time to buy a home is August!
Financing & The Best Time to Buy a Home is August
- First, the president is unlikely to get the Fed to stop increasing rates. And there are two additional increases planned for 2019. So, locking in now could save you hundreds of dollars a month in payment increases.
- Second, late summer/early Fall is traditionally a good time to score a deal. Many families are focused on getting children back in school. There are less competitors out there looking at properties you might love.
Online Real Estate Search Engine Says
According to Zillow, last year there were more entry level homes for sale in August. Supporting the idea that the best time to buy a home is August.
And with the momentarily reduced competition, you might not need to rush into a transaction or negotiate away too many concessions for your dream home.
Saving a few hundred a month adds up. Over the course of a 30 year note you could be talking six figures in savings (100K!).
FHA 203K Financing !
I’ve blogged on this subject previously. The 203K mortgage program is an excellent way to improve a Fixer-Upper without using any of your own additional cash. Your mortgage lender funds the improvements at the time of the sale. Of course, there are some rules to follow. So great time of year to buy a fixer upper!
Slow Selling Houses
Another good spot to find a deal are houses that haven’t sold through the summer. Maybe the owner started too high. Or was too demanding in negotiations. Whatever. Statistics show that houses long on the market tend to sell for below full price. So, “Days On Market” can be a powerful stat to watch this time of year for a deal.
Beat Cash Offers at Their Own Game
Nah, you don’t need a leprechaun or pile of cash. If you go through all the financing steps start to finish before looking at homes, you are pre-approved and can close on a dime once you find the right house. It’s like being a cash buyer.
Great strategy to follow to beat out cash offers during the best time to buy a home is August!
Worth a Read Boulder Real Estate News Realtor Recommends
While we don’t have a lot of water front property around Boulder (an ocean is one thing most folks wish we had), fellow real estate blogger Sharon Paxson does a nice write up. Check out her post on eleven things to watch out for when buying near water.
Bill Gassett out in Massachusetts writes a sharp blog and recently shared an article about winning in a bidding war. I’m a big proponent of getting clients under contract without the highest or best offer. Yes – you read that right. Bill shares tip # 4: Write a personal note to the Seller. That one idea has won a number of homes for my clients!
And once we do find that perfect home, be it a fixer upper or not, maybe consult the Flooring Girl for the perfect touch of color. Writing out of Westchester county back east, this blogger has good ideas for improving any space.
Meantime Lets Find a Great August Colorado Home Deal
Give me a call or contact me online now! I’m ready to help you find your dream home along the Colorado Front Range!
Excellent write up and you make some good points. I agree with you about August, and the interest rates are still low!! Great job!
It also seems to me like demand for housing also ticks down in the late summer as more people look to buy new cars–whether they’re looking for a deal on last year’s model or they want to be one of the first with the new year model.