Drop In Interest Rates Signals Time To Buy For Prospective Homebuyers

by David Weekley Homes

With interest rates at their lowest point in 40 years and equity markets stalled, consumers are refocusing on home ownership as an investment strategy. While some prospective buyers may hesitate to make a substantial capital investment in today's market environment, experts note that a home can be one of the most attractive investment choices right now. According to the National Association of Home Builders, home sales remain strong and the housing industry has been touted as a buoyant force within the shifting economy.

"One of the biggest mistakes I see consumers make is waiting for a 'better' time to buy," said David Weekley, CEO and president of David Weekley Homes, the third largest privately owned Home Builder in the U.S. "Interest rates are one of the largest factors in how much a homeowner will pay over the lifetime of a mortgage, and that makes now a great time to invest in home ownership."

"With apartment rents at current levels, many prospective homebuyers could purchase a home with monthly payments equal to or less than the amount they are paying for an apartment," he added. "Homeowners also benefit on taxes as well as building equity and appreciation in their investment."

For example, a family paying $1,295 per month in rent could purchase a $175,000 home, incurring payments in the neighborhood of $1,266.35. Tax benefits can be significant: a family in the 28% income tax bracket would save more than $21,000 in federal income tax in this example.

"If you are close to making that first home purchase or moving up to a larger home or better location, your biggest risk may be in not acting now while interest rates are favorable," Weekley concluded.

Houston-based David Weekley Homes, Texas' largest, privately owned, single-family Home Builder, as well as the third largest, privately owned Home Builder in the U.S., is engaged in the design, construction, marketing and sales of single-family detached homes. David Weekley Homes currently builds in in 18 markets across the nation, including Atlanta, Austin, Bluffton/Hilton Head, Charleston, Charlotte, Dallas/Ft. Worth, Denver, Fort Myers, Houston, Jacksonville, Orlando, Palm Coast, Panama City, Phoenix, Port Charlotte, Raleigh, San Antonio and Tampa. For more information about David Weekley Homes, visit the company's Web site at www.davidweekleyhomes.com.