The current historically low interest rates has definitely engaged a lot of current home owners to re-finance their homes. Good for them and as it is said... "more power to them" !!
But on the other hand... the low rates, has aroused the curiosity of a lot more potential first time buyers to get further involved with their lenders to see if they can somehow get "pre-approved" for a home loan.
Adding to that: those who are current home owners now have the possibility of buying and moving into a larger home and they could potentially end-up with their new monthly mortgage payments being "equal to" or "lesser than" what their current mortgage is on their smaller home.
By now you are probably thinking... so what are you getting to Oscar? Well, one needs to fully understand the impact of the low-low interest rates and what that is doing to the housing market. What is going on is that the low rates has created a "new cluster" of buyers and once we add this new cluster to the already seasonal buyers, then guess what?... we have a lot more buyers "out there" than there is houses-for-sale. And the effect of that scenario is that buyers keep trying to "out bid" each other, thus pushing home prices up-and-up almost to a point where if buyers keep waiting or not making the right competitive purchase offers, then this type of buyer has created a "self induced" delay on a purchase.
If buyers keeps waiting and the home prices keep going up, then they may find themselves in a situation where they soon may not be able to afford that house that they want and even worse yet... home ownership may be getting away from them because of the continuing upward trend of home prices.
Having said all that, even though low-low interests rates is a good thing in regards to mortgages, to some it has created a situation where the upward push of home prices is getting out-of-hand and to a point where home ownership may soon not be affordable to them.
The "key" is to get your foot in the door (ie: as in you becoming a homeowner). Therefore my statement is... do not let home ownership "roll away" and/or "get away" from you, this even if you have to settle for a smaller less-expensive home for the time being.
Oscar Castillo : BROKER - REALTOR
DRE # 01140298