Intrest Rates on the RISE!!
"LISTEN TO WHAT THE MAN SAID." And those aren't just the words from Paul McCartney's hit song of the same title...they're also words of advice for anyone who's considering buying a home or refinancing. Last week, Federal Reserve Chairman Ben Bernanke said that as the economy heals, the Fed will be very vigilant to protect against inflation. While inflation is not a problem at present...it will most certainly become a problem down the road. So why does this matter if you are considering purchasing? Because inflation is the arch-enemy of Bonds and home loan rates, and just the knowledge of it coming has been causing both Bonds and home loan rates to worsen in recent days. Along with the fear of inflation, the Fed's purchasing program of Mortgage Backed Securities is already slowing down, with the end of their buying in sight - and the reduced demand for these Bonds is also driving home loan rates higher.
Bottom line: home loan rates are already on the rise, and we won't likely see these low historic levels again.
Interest rates are still very near historic lows - George Washington couldn't have gotten a better interest rate - and the opportunity these low rates present is huge for homebuyers.
Posted at 07:35PM Oct 17, 2009 by Brad Hall in Real Estate | Comments[0]
2/20/09 UPDATE
Down market. Up market. It doesn't matter. Spring showers typically bring spring buyers. But if you wait for the seasonal thaw you'll join what could be a throng of market savvy buyers who have already scoped the lay of the land and are elbowing for position. In many communities, an over-supply of homes for sale with reduced prices, foreclosures, auction sales and sellers shopping for short sale buyers, all make it an opportune time not to procrastinate. "Interest rates are at a record low and the affordability index nears a 5-year high. For first-time buyers, rents are skyrocketing and that's an added incentive to buy a home now," If you wait for prices to fall more your could miss out. No one knows when the market will hit bottom until it begins a sustained upward turn and you can look back and actually see bottom. Shop with money in your pocket. Get a mortgage approved before you begin to shop for a home.
Posted at 10:39AM Feb 20, 2009 by Brad Hall in General | Comments[0]
State of the Market
Wow! Out of all my years selling real estate, I have never seen a Buyers Market like this! Inventory has never been this high. With interest rates being at such record lows, THIS IS TRULY THE TIME TO BUY!. Don't believe the news media, there are banks that are lending and people are becoming home owners everyday. Sellers are having to compete for qualified buyers which in return make them motivated to sell with some, giving HUGE consessions. With the roll out of the stimulus bill, the government is giving $8,000 in tax credits to buyers that purchase in 2009. When this market does turn around, and it will, I anticipate a rapid increase in home values which inturn will drive asking prices to rise fast. Don't wait and miss this incredible time in history.......
Posted at 12:07PM Feb 17, 2009 by Brad Hall in General | Comments[1]
