Great Interest Rates, Low Home Prices Equals Good Time To Buy
Posted by Dennis Pease on Sunday, January 25th, 2009 at 12:35am.
Mortgage rates have moved up a bit, but are still phenomenal, (see below). If you've been watching the markets at all, or listening with one ear at the national news, you know that the stock market has been in the same up 200, down 200 that we've seen for the last couple of months.
The bond market however, is staying fairly steady, but with a downward trend. This is driving interest rates up slightly. It seems that the bulk of this trend is being caused by investors taking advantage of the profits that are available in all markets, and moving away from the “safe haven” of bonds for the time being.
With all the policy changes that are coming down the pike, and the new shift in personnel in the Obama administration, there are a lot of unknowns out there. But I think it's safe to say that we're looking at better days ahead. How soon they get here is one of the biggest unknowns. And please understand that when the economy appears to be moving toward a better place, interest rates will go up.
So, keep advising your clients of this fact. The ones who are ready now should be buying now; the ones who are concerned about whether or not they will have a job 3 months from now, obviously should follow their instincts. But remember, the rates will change before the economy actually shows signs of an upswing. This is because the markets are driven by attitudes, not numbers. As soon as investors feel comfortable with a direction you will see the changes.
Just another note about turn times: The lenders have not caught up yet with the demand brought on by the refinance boom that is taking place. So, once again, I'll implore you to set your sales agreements with a minimum of 45 days to close. Thank you, thank you.
Have a great weekend, and be sure and call my cell phone if I can help you or clients in any way.
The following rates are based on 30 day locks with no discount points, as of this afternoon. They are not come ons, they are the rates your buyers will most likely get from a reputable lender, regardless of what is advertised. Certainly there are other specialized programs available, depending on the qualifications of the buyer.
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30 year fixed conforming = |
5.250% |
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15 year = |
5.000% |
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|
3/1 ARM = |
5.125% |
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5/1 ARM = |
5.500% |
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Jumbo fixed = |
6.750% |
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|
Jumbo ARM = |
5.750% |
|
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FHA/VA 30 year fixed = |
5.500% |
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Prime rate is currently = |
3.250% |
Authored by Lorin Wamsley, CMPS - Senior Mortgage Consultant, Precision Funding
Phone: 541-681-8787
Dennis Pease - ReMax Integrity Real Estate Broker invites you to see more Eugene Real Estate information and Oregon Real Estate Listings.
Phone: 541-844-9287
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Share22 Responses to "Great Interest Rates, Low Home Prices Equals Good Time To Buy"
Have you heard of any additional government incentives? I heard a rumor that will introduce a plan to create a 2.99% 30 year fixed product for homebuyers. I can't imagine the FED doing this for nothing and I can't imagine banks being all of a sudden "not greedy"...I am in real estate in New jersey right outside of NYC and we have heard this a few times. Can't confirm though!
Posted on Tuesday, February 17th, 2009 at 4:19 AM.
The falling interest rates seems to be a self fulfilling phrophecy in that buyers are sitting on the fence as more and more people are talking about rates as low as 4.5% for a 30 year fixed! Do you think that will happen..consistently?
Posted on Tuesday, February 17th, 2009 at 4:20 AM.
yes interest rates are still really good. Someone tell the home buyers. I have been screaming it as loud as I can on my New Jersey real estate blogs, and to anyone who will listen in person.
Posted on Tuesday, February 17th, 2009 at 4:21 AM.
Lol, James you can scream it here too.
@Austin, I want all my readers to take note, we have Realtor's here looking to buy homes themselves now. It sounds like things are going good for you Ki, I hope so.
@Gary, Lorin wrote an article about the 4.5% mortgage rates that have been rumored. The link to that article is the first one above in Related Links titled; Eugene Mortgage Loans - Rates Down. But no, I don't see those kind of rates consistently!
Posted on Tuesday, February 17th, 2009 at 4:22 AM.
Rates truly are low and prices are attractive too. As other readers have pointed out, I just don't think a majority of consumers realize rates are as low as they are - a friend of mine (loan officer) always tells me about the calls he gets with questions about news from 2 weeks ago. Maybe we should advertise interest rates on American Idol and Orange County House wifes.
Posted on Tuesday, February 17th, 2009 at 4:24 AM.
It currently sounds like the tax credit for home buyers in the economic stimulus package has been lowered from the originally proposed $15,000 to $8,000 and that's too bad because they have made it clear reviving the housing market is paramount to kick starting the economy.
I personally am seeing a lot of home buyers coming into the market since the first of the year, but they are looking at a lot of homes and want undervalued homes. If I was buying right now that is exactly what I would be doing as well. So home sellers that are serious about selling need to price their home under their competition or have something very unique about their home and I don't mean that special color they painted a wall or other little things that sellers sometimes think add so much value to their home but don't mean much to the next potential owner.
Posted on Tuesday, February 17th, 2009 at 4:25 AM.
Well, if you can qualify for a mortgage then now is probably the best time to buy a home that we'll ever see. Didn't realize rates had gone this low!
Posted on Tuesday, February 17th, 2009 at 4:27 AM.
The economic stimulus may have some effect as well, now that the senate is proposing a $15 k tax credit. That, along with the low interest rates, should be a strong incentive for those on the fence about buying a home.
Posted on Tuesday, February 17th, 2009 at 4:28 AM.
I have great hopes for the Obama Admin but learning that the current low interest rates will go up soon pushed me a bit. I think it's time to buy that new place for us. It's now or never.
Posted on Tuesday, February 17th, 2009 at 4:29 AM.
I think a lot of buyers don't realize how low rates are. Some people are waiting on the fence for lower prices but with rates this low the bigger risk is that rates will increase. We are actively looking for properties for us to buy personally.
Posted on Tuesday, February 17th, 2009 at 4:32 AM.
>The lenders have not caught up yet with the demand brought on by the refinance boom that is taking place.
Excellent point about the 45 days clause. There could always be movements in the rates based on the financial institutions assessing current factors. Nice report and advice.
Posted on Tuesday, February 17th, 2009 at 4:34 AM.
wow i can't believe that the interest rates are that low. Makes me really think about the possibility of buying something very soon.
Posted on Tuesday, February 17th, 2009 at 4:36 AM.
I think there is a cause and effect relationship between interest rates and house prices. But you have it mixed up. All else being equal, as interest rates go up, home prices will go down. This comes down to affordability. Increasing interest rates will increase the monthly payment that a new buyer will pay. Unless there is decent wage inflation to match the interest rate increase, then the house selling price will have to drop to keep affordability the same.That is assuming a rational, well priced housing market of course. I wouldn’t suggest buying a house now, as the whole economy is in an UNKNOWN status, you can see signs here and there, but not the big picture
With some downturn in house prices, it felt like how subprice started, and when people thought the worst was over, it dropped even more
Unless you are in great financial conditions, can secure a good rate for mortgage (5-yr fixed 4.99%, or P-0.75 Variable), and really loved the house, wait and see!
Regards,
Michael McLaughlin, Cary real estate
Posted on Tuesday, February 17th, 2009 at 4:39 AM.
The interest rates are incredibly low!! I know quite a few Realtors buying properties. I am getting a lot of buyer inquiries but it seems there are many sitting on the fence, waiting for home prices to drop more. No time like the present...if the rates go up they lose money.
Posted on Tuesday, February 17th, 2009 at 4:41 AM.
yes now is definatly the time to buy
Posted on Friday, February 20th, 2009 at 8:17 PM.
Oh my... I cant believe that it would be possible to be that low. In some cases it would be good and for some it won't.
Posted on Saturday, February 21st, 2009 at 12:27 PM.
It is good news that interest rates is still good. Hence for those potential buyers who were waiting so long undecided about buying a home, it is the best time for them to complete the deal without making any delay.
Posted on Sunday, February 22nd, 2009 at 1:54 AM.
[...]More Details $8,000 Home Buyer Tax Credit, IRS Filing Rules
Great Interest Rates, Low Home Prices Equals Good Time To Buy
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Posted on Monday, March 30th, 2009 at 12:49 AM.
[...]More Details $8,000 Home Buyer Tax Credit, IRS Filing Rules
Great Interest Rates, Low Home Prices Equals Good Time To Buy
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[...]
Posted on Saturday, April 4th, 2009 at 12:10 AM.
its wonderfully written. i like this .its much useful. thanks for sharing.
Posted on Thursday, June 11th, 2009 at 6:06 AM.
It's good time of buy real estate and it's safe investment. Thanks.
Posted on Wednesday, June 17th, 2009 at 3:56 AM.
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Wow, being from 3rd world country I would say those rates are unbelievable. In mine it's kinda 12% at best.
Posted on Sunday, January 25th, 2009 at 4:23 PM.