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That's still low compared to the last decade. Rates didn't dip below 5 percent before 2008. So someone looking to buy a home in the next few months doesn't need to panic, said Svenja Gudell, chief economist at Zillow, a real estate information company. "My advice to buyers would be to not freak out and feel a sense of urgency," she said. "If
To read more about online clothes shopping visit shop online clothesyou aren't able to buy a house at 4.5 percent, you probably weren't able to buy a house at 4 percent." The stakes are higher for buyers in expensive markets, where housing can eat up a much larger share of household income. ___ BUYERS HAVE OPTIONS To offset some of the higher borrowing costs, homebuyers could consider lowering the interest rate by paying a fee to the lender up front, something known as buying down the interest rate. This strategy makes the most financial sense for buyers planning on staying in the home for many years. For owners looking to sell within a few years, an adjustable-rate mortgage can be an attractive alternative. ARMs have a low, fixed-interest rate for a few years, typically five or 10. The rate then adjusts to a higher rate. Another move: Ask the seller to pay closing costs, which would free up cash for buyers to manage the higher borrowing costs.
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