This news of the Government's help has caused bond prices to spike, forcing lower interest rates. It is important to remember that the Federal Government does not directly dictate home loan rates....they simply have the ability to influence buyer sentiments and investors by fueling cash in the market. Rates are determined by the price movements of Mortgage Backed Securities, which compete for investor funds in the market. With the governments fueling cash in our market rates are being held down superficially.
The truth of the matter is that we don't know what the negative effects of this potential bailout is going to have on interest rates or how our government will function in the future. What we do know is that current rates are 5%! A historical low for the last 48 years. This coupled with home prices down by upwards of 10%......Why isn't every first time homebuyer taking up this unique opportunity to purchase a home?
So the Gary McNinch Team is asking all our potential buyers "What are you waiting for?" We have the lowest rates in 48 years, the advantage of a recent home price reduction of up to 10%, and lots of first time homebuyer programs. Give us a call, visit our website www.RentonHomeFinder.com and search for homes.
That is what I am going to put on my website.......
Rates are at historic lows...so are prices...what is stopping you??
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They are waiting for the 4.5%, or something. A loan officer I work with wrote a note yesterday saying that buyers should buy now since that rate will be next to impossible to get unless you have perfect credit.
I think that buyers need to be convinced that this is reality and not some sort of "gimmick" and that people can actually pre-qualify to close at this rate. I've said it before, and will say it again...I'm not sure that low rates to new homebuyers is going to sustain and improve the economy. I'd rather see refinancing rates much lower to help those already in trouble and reduce the chances of additional foreclosures in the market.
Hi Gary, All right, quit teasing! (lol) The 4.5% would be great for new homeowners, but that may just be 'pie in the sky' What is REAL is the 5% available mortgage rate. Now that is fabulous. The lowest rates in 48 years! I have been telling all of my buyer prospects that if they have a secure job then this is a most advantageous time for them to buy a new home. As Warren Buffet says when everyone else is selling, that is the time to buy.
Al - feel free to reblog this. It is the type of info that we need to get out there, to help those who are really financially able, get ready to take advantage of todays market.
June - I think (my humble opinion only) is that now is as good as it is going to get... scares me that buyers with really good credit will wait and miss out.
List and Sell (and buy now) Gary @ RentonHomeFinder.com
Synergy - I think it is a great time for people to get in the market, but I do agree with you that this is not the total answer. Making a refi available and keeping people in their homes rather than letting them go to foreclosure will be a huge help to our inventory issues. Thanks for the comment.
Marian - fabulous is correct and Warren Buffet is hitting the markets again at just the right time.
List and Sell (like Warren says) Gary @ RentonHomeFinder.com
superficially or not..the rates are down...yay to that.....lets hope we see 4.5....
I'm asking the same thing, bro!! We are living in wild and wacky times. I know that I'm strapped in for the ride of a lifetime. ~GBU~
Konnie - Sure better than 18% when I bought a house in 1980.
Elizabeth - This should really move those potential buyers who should get on the horse. Concerned about the ones who can't qualify now plus the excess inventory.
List and Sell (grab the reins, here we go) Gary @ RentonHomeFinder.com