Interest Rates May Rise – Do Not Wait to Buy a Wilsonville, Oregon condo

Lender Notes:

The biggest risk for homebuyers in today’s real estate market is interest rates, not price depreciation. Yes, home prices are currently experiencing a bit of pressure, and yes, there is inventory in the market, but waiting to define a “bottom” in a real estate downturn that is 24 months old in which prices have already adjusted, is very difficult.

The bigger issue and real risk to buyers are interest rates. A sudden rise in interest rates can easily erase the benefit of finding a home at a “bargain”. Long-term interest rates are directly impacted by the health of our economy and inflation. If the economy is struggling or if there are increased expectations of inflation, long-term interest rates will rise. Both of these factors are at work in the current market.

Why are rising interest rates so “bad”? Because most people finance the purchase of their own home and any increase in interest rates will decrease what an individual can borrow. The impact is significant. Here’s an example:

A 0.72% interest rate increase for a borrower who qualifies for a $400,000 loan would reduce their qualification to $370,482. This is a decrease of 7.4%. Unless the home has depreciated 7.4%, or the seller cuts you a “deal”, you’ve lost. By waiting for interest rates to decrease, you’ll qualify for less, or pay significantly more in interest over the term of your loan.

No one can accurately predict the future of real estate values, but historical trends tell us that long-term real estate investing in Oregon is a sound decision. In addition, prices have already adjusted in many markets. That’s why Oregon master planned community, Villebois, is a good choice if you are considering buying a new home. Now is the time. Interest rates are still relatively low and the risk of rising interest rates is quite real.

Whether you are a first time homebuyer in Wilsonville, Oregon, or you are looking to invest in Oregon real estate, the Villebois Village Center is just what you’re looking for. Invest with Costa Pacific Communities, Oregon builder/developer. There is even an amazing leaseback opportunity currently being offered on the first homes available in the Village Center.

Call 866.580.2836 or email Blog@CostaPacific.com for more information about how you can secure your historically low interest rate and live in the Villebois Village Center.