Ignore the Headlines

I was just forwarded an e-mail with an article from Time Magazine. This article, Ignore the Headlines coincides perfectly with the last blog I posted. It's a great educational article that is refreshing to read about the current real estate market. In case you don't have time to read the entire article (which is a short easy read) I have posted a paragraph below that I believe is the most important message in this article.

"Consider a typical home that sells for $218,900.
You put down 20% and get a 30-year fixed-rate mortgage at today's rate of 5.5%.
Monthly principal and interest come to $994.31.
Let's say that 12 months from now the same house goes for 10% less, or $197,010.
But by then the recession is history and the Fed is jacking up rates to stem inflation.
If mortgage costs rise a point, to 6.5%, your monthly payment would be $994.94 and you'd have saved nothing. Meanwhile, home prices might steady and sellers might become less willing to negotiate.
And you have spent a year living someplace you'd rather not be."