Home buyers that are holding off on buying a home until prices fall some more are missing out on the big picture. It is true that house prices have been falling. It makes sense that one would wait until prices dropped more to save on the purchase price but there is more to the deal than the purchase price. Buyers could be spending more overall if they sit around watching prices fall.

Buyers may be unfortunately keeping an eye on house prices and little else. Thinking that if they hold out just a few more weeks or months that the prices will decline further. Some may have already picked out the home they want and they are waiting until the seller drops their asking price. All of these scenarios may be costing the buyer.

Even if the Bank of England’s Monetary Policy Committee leaves the interest rate unchanged it does not mean that lenders are going to leave their rates the same. Just as those seeking a remortgage have found rates changing from week to week, the same can be said of new home purchase mortgages. Lenders are not offering the great deals of a few weeks ago and that can mean much more out of the pocket in the long run than the difference in a purchase price.

A change in the interest rate can have a major impact on the monthly mortgage payment. When compounded over the life of the loan the amount can be significantly high in comparison to what can be saved waiting for housing prices to reach bottom. As prices fall the value of your overall purchase power declines as interest rates go up.

Waiting on house prices to decline is not the only way to save money on a house purchase. It is important that buyers understand how an increase in the interest rate offered will impact their budget now and later. Watching house prices is important but so is stepping back and looking at the big picture with such a major purchase.