“Marry the house, but date the rate”

Ron Arnold residential real estate with KW
Cute little sayings like “marry the house, but date the rate” might sound trite, but
at their core, they illustrate an important truth. The interest rate you get is not as
important as the home. Why? Primarily because interest rates can fluctuate
wildly, while home prices, especially in Southern Calif have an historical trend of going
strongly up.
Right now, that’s a particularly important thing to remember since interest rates
are around 7%, but home prices are still going up about 1% a month today. And
the two most recent economists I listened to for their next 12-month projections
show that home prices will continue their upward momentum, and yet on the
other hand interest rates in the next 4-6 months, likely will fall.
So, if you buy a home right now with a higher rate, you’ll be buying the home at a
lower price (than if you waited). And then when the interest rates go back into
the 5’s, you can refi……..and you’ll be greatly benefitted by all the accrued
appreciation.
If you know of someone is thinking about buying, but is “holding off until
something happens”, have them give me a call and I’ll show them all the data
that’s out there in order to help them make the best decision possible. Even if
that’s not to buy.
Ron Arnold, doing real estate in the unrealtor way.