The Great Rate Debate

Written by: Bill Panebiancoalt

With The Federal Bond Prices in a Bear Market and prices moving down on bonds, Interest rates move in the opposite direction.  Many buyers that just a few months ago were waiting for prices to go back down are now very confused.  The time to buy is not now but rather last year. I don’t know anyone who is selling time machines.

That being said the same will most likely be true next year and people will wish they had purchased this year.  We are in a bit of a pickle, existing home inventory is at the lowest level in years, new home prices are rising and interest rates are climbing.  Let’s look at all the options.

altBuying a used house:

This is always a gamble, as so many have hidden costs that even the best home inspectors miss such as Chinese drywall and black mold. With the diminished inventory most people have to settle on a less desirable house or a house in an area that is not their choosing.  Buying a house that someone else chose all the colors (floors, cabinets and countertops).  The insurance costs are often a hidden factor that can add hundreds even thousands of cost per year to the total price.  Very few used homes are the bargain they appear to be.

Waiting until rates and prices drop:alt

This is the worst of the options as a home is so much more than just dollars.  The sooner you build the right home the happier your life will be.  Most people move to fix a problem, it could be they need an extra bedroom or bathroom, maybe they want to downsize and not have so much to take care of.  No matter the reason there is almost always a good one and waiting rarely helps.

Build a New Adams Home Now:

It’s the only logical choice. Let’s look at the cost of waiting.  Using current rates of 4% and a financed amount of $160,000, if rates go up a full percentage point the payment changes by $95 per month.  This is less than the difference in insurance costs on some of the homes built before the 2012 wind codes.  The price of waiting if the rates raise a percentage point AND prices go up $30,000 (Adams Homes projection) the cost goes up by $256 per month. This is an extra $92,160 paid over 30 years.

The choice is simple:  BUY NOW and BUY ADAMS.  With 7 locations to choose from we have homes where you want to live. Visit any of our locations or shop 24 hours a day at


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About Adams Homes
Founded in 1991, Adams Homes is known as the premier home builder and is one of the largest privately-held home building companies in the southeast. Adams Homes has built more than 35,000 new homes since 1991 and builds in seven states including new homes for sale in Alabama, Florida, Georgia, Mississippi, North Carolina,South Carolina and Tennessee with corporate headquarters in Gulf Breeze, Florida.

Discover all Adams Homes communities, model homes and homes for sale on our website, We have new homes for sale perfect for the first-time buyer, move-up home buyer, who desires to upgrade to a more accommodating new home, and the empty nester who desires to downsize to a smaller home .

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