First time buyers are feeling the pinch with home prices rising almost 15% in May along with higher interest rates ...but Cathy Baker of Baker Mortgage says home prices are now changing in their favor. "New homes are actually coming down a little bit. Others are starting to become more reasonably priced!" Baker saying they should buy now if they can because of interest rates.
"Unfortunately - I think these people are going to be looking at double digits if they wait for a year." She strongly emphasizes all home buyers need an NEW pre-approval for a home loan because requirements are changing.
Buying a home for the first time is scary enough without the threat of being out-bid by cash buyers. She says prices are slightly dropping and the competition isn't as fierce as it was. "At your showing, you won't have 30 people the day it goes on the market --- and 10 of them making a offer for over the asking price!"
Baker says interest rates will continue to rise - possibly to double digits next year. She feels strongly about bring prepared. (we repeat:)
"It makes sense more than ever --- for people to have a really god, strong current pre-approval. The rules and the ratios are changing - along with the interest rates!!!
And the number of homes for sale remains well below normal levels for this time of year.