First time home buyer, should we try to buy now before interest rates rise?

[GeoffD]

Originally Posted by skittlesrainbow

We're currently renting in Newton; I work downtown (Back Bay) and my husband works in North Cambridge. Our current budget is 600k or under. We want a single family house (no kids yet but we have a large dog and 2 cars so condo living is not ideal).

You're almost better off looking at the Stoughton Line to get to Back Bay Station. South Station to North Cambridge on the Red Line is ugly but it's at least possible. I see a 12 year old 4br/2.5ba cape on 0.43 acres next to an elementary school and a soccer field 10 minutes walk from the train station for $459,900.

[MikePRU]

Originally Posted by BostonMike7

A year ago, when we were closing it was the same situation. Interest rates last Dec were in the 3.75% range and threat of creeping up to 4%.




A year later...still under 4.

I bought my house about 4 years ago. Interest rates are pretty much the same as they were then. Like I said, no one has a crystal ball. I never thought interest rates would be where they are today four years ago. I never would have guessed they would still be this low.

[NewfieMama]

Originally Posted by MikePRU

I bought my house about 4 years ago. Interest rates are pretty much the same as they were then. Like I said, no one has a crystal ball. I never thought interest rates would be where they are today four years ago. I never would have guessed they would still be this low.

Agreed, we bought in 2010 and I remember wanting to lock in our interest rate at 5.25% before it went up to 5.375%. I was convinced rates would HAVE to go up since they seemed superficially low at that point. It's now been 6 years and we've definitely refinanced. I see a stronger case for rates increasing now vs. 2010, but you still never know.

[mdovell]

Rates are slated to go up later this month at least a quarter point. Granted the banks themselves will have some competition and of course the more you put down the better the terms would be. This certainly is not the time to get an ARM that's for sure. I'd be a bit wary of the mortgage deduction though. There's some plans on the book that it will be scaled back to homes no more than 500K.

The Boston area isn't making that much for housing demand and often times the worst time to sell is the best time to buy.