I’d like to offer my take on how uncertainty could affect a household decision—namely, purchasing a home, whether you’re buying for the first time, moving up or considering a vacation retreat. Aside from analyzing how a house suits your personal circumstances—Is it in a good location? Does it fit my budget?—you also have to factor in larger issues that are beyond your control. You may, for example, wonder whether the housing market is in your favor, and how easy it would be to obtain financing (see our outlook on housing). You might worry about tapping your savings for a down payment when you may need the cash later for higher taxes or health care costs.
You could be reluctant to take advantage of rock-bottom interest rates on adjustable-rate mortgages because you have misgivings about the Federal Reserve Board’s ability to keep rates low indefinitely. And if you are inclined to borrow, you may be put off by a lending process that can take six weeks or more even if your credit score is stellar—and could be derailed if the appraisal doesn’t pass muster or the paperwork is delayed.
As you search for homes on the Florida Space Coast, think buy smart and I am sure you’ll save time as well as money in the process.