Did you know the debt ceiling has been raised 75 times since 1962? and the country has survived.
So what does it mean to you, the first time home buyer?
Well short term, interest rates dropped to an 8 month low on Monday on news of the debt settlement, but interest rates change daily and as the stock market recovers, interest rates will
probably inch back up a little bit.
What’s the longer term impact?
Did you know that in the last 5 years interest rates have risen 1% within 60 days FOUR times, so this “window of opportunity” may not be open for too long.
The three main rating agencies have indicated they will continue to rate the U.S. debt as AAA for now but with a negative outlook - a rating that indicates a possible downgrade.
A downgrade means higher interest rates.
The formula is simple: Higher rates = less demand = lower home prices.
Even though home prices may continue to drop, an increase in interest rates will more than offset any reductions. It’s your money on the table
Did you know that a 1% increase in interest rates, will increase your payments more than $100? (based on a $200,000 loan)
I’m more concerned about the future of first time home buyer down payment assistance programs.
As the government looks for more ways to cut spending, the funding of these programs certainly has to be in their sights.
I’m more concerned about the future of first time home buyer down payment assistance programs.
As the government looks for more ways to cut spending, the funding of these programs certainly has to be in their sights.
The #1 barrier to homeownership for first time home buyers is saving the funds for down payment and the continuation of these programs is vital if the economy and housing is ever going to make a full recovery.
Even if you weren’t planing on down payment assistance, it’s a good idea to take a look at it as an option.
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Even if you weren’t planing on down payment assistance, it’s a good idea to take a look at it as an option.
Other Related Posts:
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