Interest rates are continuing to drop and sales are picking up! This may be a bit of good news for sellers. Over the last week, there has been a giant leap of interest in the housing market!
Realty Times is talking about Freddy Mac’s low rates…
One-year Treasury-indexed ARMs averaged 4.85 percent this week with an average 0.6 point, down from last week when it averaged 4.91 percent. At this time last year, the 1-year ARM averaged 5.24 percent.
“The Federal Reserve’s announcement that it intends to purchase Treasury securities over the next six months caused bond yields to drop and mortgage rates followed,” said Frank Nothaft, Freddie Mac vice president and chief economist. “Rates for 30-Yr FRMs peaked last year at 6.63 percent on July 24th. With this week’s 30-Yr FRM, the interest rate difference is almost 2 percentage points, which amounts to a savings of about $225 in monthly mortgage payments for a $200,000 loan.”
“And potential homebuyers are taking notice of these historically low mortgage rates. Both new and existing home sales rose 5 percent in February. First-time homebuyers accounted for half of all existing home sales, according to the National Association of Realtors®. In addition, mortgage applications for home purchases consecutively rose over the first three weeks in March, based on figures published by the Mortgage Bankers Association.”
For the full article click here: Another Record Low Set for Long-Term Mortgage Rates This Week
We still have a lot of homes to sell so prices will stay low for a while, but once the number of available homes diminishes, then prices will go up. We don’t know if that will happen or if we’re in for another round of foreclosures which will keep the prices low.
Could you get a home for a lower price if you just wait a little while longer?? There’s no magic 8 Ball. You might. But the interest rates may also rise. The number in inventory will affect the price.
In 5 years will you say, “I wish I had bought back then?”
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Interest rates are still at an all time low. It’s makes it a great time to buy a house at these rates.