Rising mortgage rates!!! Causes buying surge from first-time Home buyers

Here is another predictor that the housing bottom is occurring or has already happened. Rates are quickly pushing up to the 5% level and just a month ago they were at 3.75 for 30 year home loans. There is always a slight surge in buying and building new homes before the market turns for the better and prices begin to actually rise.

Just like waiting to buy a stock at the absolute bottom most of the time the investor waits until it too late and the profit upside has passed them by. We all tend to be a little greedy sometimes for our own good. The same thing will happen in the home market. Many of us will be back buying when we have to and not at the best time for a fair return on equity.

Warren Buffet is quoted as saying about his investment theory, "I buy when others are fearful and sell when others are too comfortable about the pricing." Its more than a theory, I think his investment strategy has proven itself to say the least.

This week the large national homebuilders stock price rose by 18-20%. This is no accident, some body knows something with that kind of move. As homes are not built the demand is still there just delayed and existing home prices will or have begun to raise. I have been around long enough to see 35 years of history you know the signs.

Have you thought about what you home plans and dreams are? Have you looked for the best time to buy? If so call us to set up your private no obligation consultation on how you might get started in building the home of your dreams at this very opportune time.

Merry Christmas

Craig
319-404-0412
Craig@CraigFairbanksHomes.com