For the first time in history, 30 year fixed rates dropped close to 4.75% yesterday. Jumbo loans too are now hovering near 5.5 % . What a shock! This drop in fixed rates is historic, and likely to be a very short-lived, giving home buyers a small window of opportunity: Are you considering buying a house? If so, this would be one of those moments to carefully (and quickly) analyze what’s out there for sale, and pounce on that acquisition. Not only are asking prices low, but there is a plentiful selection.
When will the housing market hit bottom? Assuming we’re not there yet, we are inching very close. We’ll know we’ve hit bottom once housing prices themselves start upward. The best time to make a purchase is right before the upswing.
You’ll have the best mortgage terms if you can lock in a rate before interest rates start back up. The advantage to buying now is that finance terms are so favorable. As buyers take advantage of this historically rock bottom interest rate, the housing market will likely begin to shift. As more homes go under contract, the supply of properties available for sale will decrease, causing selling prices to increase… thus moving us out from our current ‘buyers market’.
In response to the question we are constantly asked (“When is the right time to buy?”) … the answer is “Now! Now would be a great time to buy. But… if you are staying in your home instead, and not planning on selling … this is a fabulous time to look at refinancing your loan.” With regard to ‘when’ you should lock in a rate, James Venney’s blog article South Florida Interest Rate Update … Should You Lock? explains the current mortgage situation to a tee!
Written by: Vicki and Alexandra Restivo
