Here we are again…

Where were you in 1971 when 30-Year Mortgage Rates hit a record low and we never thought we’d be there again?

 

I read an article this morning, and thought to myself about how incredible it is to be a buyer right now.  I have seen many different market cycles, and in the last down market of 1990 we were experiencing interest rates above 9.0%.  Buyers were still purchasing, and qualifying for a loan on what was a great real estate deal for that time.   Today, when I read an article stating the information shown below, I think, “Wow what a great market to be in as a buyer; where we have record breaking low interest rates AND incredible values in the market!”  I also can’t help but to wonder which buyers will be the ones thinking “Glad I Did” instead of “Wish I Did” in 5 more years – which is exactly what I saw and heard 15 years ago!

 

“The average interest rate for the 30-year mortgage has fallen to the lowest level since Freddie Mac began compiling its weekly survey in 1971, declining to 4.71 percent this week from 4.78 percent a week ago.

Rates also were more attractive for 15-year fixed loans, which fell from 4.29 percent to 4.27 percent, but many consumers may not have qualified for them because they now face higher credit standards from lenders.” 

 -REALTOR.com

 

What’s most important to take away is that since rates are at a “record low,” that it is certainly not a ‘typical’ circumstance and should be taken advantage of, as they inevitably won’t last. If you are looking to buy, get in to escrow as soon as possible in order to lock in an incredible rate. And if you are a seller get your home sold so that you will be able to take advantage of these rates in your next purchase.

 

Mortgage interest rates are a huge part of the real estate transaction equation. The slight variation in price of the home does not have the same impact in the long run of how much you pay for it as the interest rate does. With the combination of an extension for the buyer tax credit and the interest rate dip, this is the perfect time to purchase a new home!

 

If you want to know more about rates and qualification for purchasing please call me at (805) 582-9500 or email me at Stephen@cghomes.com.

 

To stay educated in the market and view homes as if you were an agent, visit our site www.cghomes.com.