Everything That Goes Down Must Go Up Again…
And here, I am talking about interest rates. (For you sellers out there, since prices are down, you can eagerly anticipate when prices will also come back up!)
Mortgage interest rates are currently the lowest on record. This is not an attempt at hyperbole. Rates for 30-year fixed mortgages are hovering around 5% and last week buyers were locking in rates in the high 4% range. These rates were common back in the hey day - but you had to get an adjustable rate loan to get rates this low. Now, you can get a prized 30-year fixed loan at these rates if you buy within the next several months.
After that, around the middle of this year, some experts are predicting that rates will creep up because the Federal Reserve will have exhausted many of its efforts to lower rates, and the large stimulus package being discussed - along with other dynamics in the economy - will cause rates to remain this low for only so long. Then, they will go up.
If you are considering buying in the next 6 months, you should keep this in mind and don’t delay your efforts to secure that dream home.
Check out this article from Reuters that discusses these details in a good article on the topic.
http://www.reuters.com/article/ousiv/idUSTRE5077SJ20090108?pageNumber=1&virtualBrandChannel=0
Check out the rest of the week’s important real estate articles, and as always, call me with any questions.
http://www.car.org/media/pdf/Beyondtheheadlines_011509.pdf
Kevin P. Cummins
Realtor / Broker / Attorney
Coldwell Banker – Carmel Valley
Cell: 858-750-9577
Search the MLS on my new website at kevincumminshomes.com.
