Is now a bad time to buy a home?

It is never a bad time to buy a home to live in. Owning the home you live in has always, is now, and will always be the best way to go.

depends where you live the prices are down around texas but i california they are quite high

My fiancee and I just bought a home. Our FIXED interest rate is 6.89%. From what I gather, buying now might be the way to go. The interest rates are going higher, but from the time we locked in our rate, until we closed 2 months later, the normal interest rate had only increased an 8th of a percent. Even if you do buy at a higher interest rate, you can always refinance later on. Many places offer cheap interest rates. Just remember that FIXED is the way to go, because as the interest rates climb, yours will stay the same...and you can always refinance later. Stay away from ARM's (adjustable rate mortgages) and balloon ones. They sound good, but will get you in the end. I hope this helps.

If you will be living in your home for a few years, then it will most likely be a good decision. A couple points:

1) It is a buyer's market, meaning you can get lower prices than you might otherwise be able to get and you have a greater selection to choose from, and more negotiating power.
2) Yes, interest rates are creeping up, but guess what? Next time we hit a recession the Fed will lower rates. They always do. The Fed is a one-trick pony. When they lower rates you can refinance and lower your monthly payments.
3) Be cautious if you buy in an overheated market like California, Hawaii or Florida.

Good luck. I don't believe all the bubble talk, but be aware that we may have a sluggish market for some years. That's not a bad thing if you are a buyer.

like most have said, it depends on where you live. Or more precisely where you want to buy a home. Are you financially prepared? Help us with a little more info

If you have been paying rent, and are tired of paying someone's else's mortgage payment (that is what your rent is doing)...Than if you feel you can afford to buy a home, and the up-keep that goes along with it - than it is the RIGHT TIME FOR YOU - to purchase a home. The market is always going to be up and down - but the rates are still good, and I can not for-see what the rates will be like in a year or so (wish I could).

Why not do a comparison, on what you are looking for, the area you are looking for, schools, shopping, traffic, town, out of town, etc, and than see what your options are.

There are many For Sale By Owner homes out there too - Don't for get them. For they are more willing to help you with Closoing Cost assistance, than paying a realitor fee. Your Lender / Broker (if you use one) will be able to do all the paper work on a FSBO - Why a Broker -

Talk with a broker, a broker underwrites for many company's (I underwrite for 150 companies) so I only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a "hard" pull and it drags down your credit score. When looking for a home, please do not apply for a credit card, Department Charge Card, Gasoline Card or make any major purchases, like a auto, etc. This will pull your credit down.

Try to find someone (broker) that will pull your credit one time, and submit your loan application to company's that will go off his credit report. By the way, a loan application is called a 1003, and they will issue you a GFE (Good Faith estimate, with-in 3 days, that is per the RESPA laws, and the TIL (Truth in Lending). This will tell you the up-front closing cost (etc) associated with your loan. This is a estimate only - not the final - but it does help you figure things out.

In my opinion jimmy dean, satarnag and daniel g (a 15 yr old with wisdom of an 80yr old) had the best answers. Everyone else gave you speculations of what is going to happen with the market. Well I ask you do you really care what will happen with the market? Arent you buying your HOME to live in it for many years to come? If you are, then dont listen to market bubble stories. Even if you are trying to invest LONG term in real estate, it could be a good time to do it. BUT If you are looking to flip properties than YEAH it is not a good time to do it.

Real estate is one the best investment you will ever make in your life so treat it like one. Dont become a speculator/flipper and become a real estate investor (homeowners are investors as well because they are investing in their future).

Here is an article I wrote back in November an it still hold true. Hope you like it.

Real Estate market bubble burst!!??

Well, we’ve heard so much from so many different “experts” but we ask how many print media columnists does it take to create a Real Estate market bubble? They really can’t but they can sure create fear on the consumer of a bursting housing bubble.

Most media are always looking for ways to increase circulation, which would equal to profits therefore any story suggesting a bursting bubble is going to attract readers. Not that they write this articles for the sole purpose of inducing fear on the consumer but don’t let media stories convince you that a bubble will burst or even worst become a self fulfilling prophecy.

Ultimately, the consumer is the one that dictates if there will be a bubble burst in the Real Estate market.

Three important facts that guide property values are:

Supply vs. Demand: If supply of housing is greater than the demand, housing values will drop. If the supply is less than the demand, housing values will rise.

Employment: This should be a no brainer. Solid and growing employment provides income for down payment and house payments.

Interest rates: This is very powerful driver in creating and sustaining property values. When the rates are reasonable, most people are willing to make important investments like purchasing a home. With lenders now offering easier loan programs to qualify, there are now many people able to purchase a home. Now, just because lenders have been offering “generous” programs should not encourage people to go out and obtain any type of loan available. Many loans are dangerous and don’t fit with everyone’s lifestyle and economic situation. Many loan agents have been quick to over qualify borrowers and what’s worst not explain completely the pros and cons of each loan program available.

Rates have been creeping up little by little over the past couple of months and are expected to continue to rise a bit more next year as well.

It could be possible the “bubble” will burst but not likely. The Real Estate market will most likely will slow its rapid ascent, level out and maybe dip a bit. But a big burst? I don’t think so.

Nobody can tell what exactly will happen in 2006 with the Real Estate market or the interest rates. What you can do is get informed and protect yourself against a busting of the bubble. You can sure minimize the damage if there was a burst by planning ahead. How well secured are you in your current job? Your income? Have much equity have tied up with loans? Does the equity you have now along with your savings withstand a dip in your home’s value during the time you anticipate to own it? Don’t stretch your finances by paying a high price for a home just because you’re stubborn and want to have that home.

no ... i want to buy one too..but i'm just 15 years old
also i thing that is a good time

If you live in Michigan no it's not.

Not around me the prices have come down and interest rates are not to horrible. Yes they have gone up some but they are still low and mortgage companies are going down quick so they will give any one with decent credit a break.

It's never a bad time to buy a home. Real estate is the most stable investment you can make.

YES,the markets gone soft and the intrist rates gone sky rocketing!!!

As apposed to renting, it is never a bad time to buy if you're thinking long term.

Regards

depends where you wanna buy... buy a house in Arizona or Oregon. Houses are really cheap there right now! I live in CA. Don't buy one here, they're real expensive!

if u do take me home w/ u

You hear a lot of advice one way or another. Some are saying that house prices will continue to rise. Others predict a housing bubble. Some say interest rates will continue to rise. Others claim that we're headed for a recession. At the end of "Back to the Future Part 3" Doc Brown tells Marty "the future hasn't been written yet." And no one knows the future because there are decisions that haven't been made yet by consumers, producers, economists, the chairman of the Federal Reserve (who raises and lowers the interest rates which affects housing prices). So it comes down to one question, "Do you need some place to live?" and "Would you rather own your own home or live in a rental property or elsewhere?" Suze Orman said that your decision to buy a home should not be based on the economy or someone else's prediction. She says that if you need a house, then buy one; it's where you live. And you'll always need to live somewhere. In time, the house will be more valuable than what you paid for it. Those who ignored the bottoming out of housing values back in the 1970s can today sell their home because the home eventually exceeded its original price, doubling even tripling in value.

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