There is currently talk of near term rise in inflation which will cause the Fed to increase interest rates. If this is so then is this a good time

Asked by Kd, 25414 Mon Oct 12, 2009

to sell and buy or is this more likely to occur several years out?

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Joni Preston, , Lafayette, CA
Mon Oct 12, 2009
Hi KD,
I have been told by my mortgage lender friends that if you have a move in mind, you should lock your rate ASAP - so I think the rate hike is coming soon.

If you are buying a home, now would be a great time - before pricing begins to creep back up. If you have to sell to buy, you will likely have to accept that you are going to get less for your home than you would have in previous years. In a move up situtation, you will save more on the more expensive home than you would have in previous years as well. In some cases, the change in the market has made that move up a possibility.

Good luck either way. The market has been showing signs of improvement - less days on the market, multiple offers, etc..
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Edith Karoli…, Agent, Winnetka, IL
Mon Oct 12, 2009
Hi Kd,
Since nobody has answered yet I just will give you a few thoughts.... And hopefully a Realtor from your area will go into more details and specifics in YOUR market.

First I want to say that the type of property you are selling and type of property you intend to buy will impact that decision...
Second are you selling at the lower end and are you buying at the higher end, this also will make a difference for you when upgrading in a down market, you will lose some money in the sale but you will also buy the much larger or newer or larger lot property at a much lower purchase price and you will with good negotiations make up the difference nicely.

Third each area, certain neighborhoods, locations have specific conditions when it comes to pricing the properties...

When you are thinking about loan interest rates, I would probably not base any major decision on that decision ..... it is more important to look at your personal situation, your needs, what you always wanted to buy and where, how financially it would work out for you, stable employment etc. etc. All of those are more important....

There was a time when mortgage interest rates were17/ 18 % and people would still buy homes, people have to live somewhere, just a little thought.....
Feel free to look at this site: http://mortgage-x.com/trends.htm
(just copy it paste the http in your browser.....)
Sitting with an experienced Realtor in your area and discuss you wishes, wants and needs, have him or her address the current market value of your home, and your financial equity etc. you will together come to a good decision I am sure.
Good Luck to you and I hope my little comments help a bit.
Edith Karoline YourRealtor4Life!
Working always in the very BEST interest of her clients...
EdithSellsHomes@gmail.com
Covering the city of Chicago, the entire North Shore, and most if not all N and NW suburbs....
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