A couple of days ago it was reported in the Wall Street Journal online that the Treasury is considering an option that would lower interest rates on new home loans down to 4.5% fixed. This has put the home buying and refinancing public into a minor frenzy as we continue to receive calls about our new "low rates". The problem is that rates simply aren't quite that low yet. Like everything the Treasury and the Fed are doing these days this may….., or may not happen. The reality is that an unnamed source at the Treasury reported that they are "considering" dropping interest rates down. Nothing has happened and may not happen. Everything about this "bailout" has been hit and miss with no real structure or plan attached to it so we'll see.
The problem with reports like these is that they cloud the facts about the already positive side of the mortgage market and have the unintended impact of slowing the very market they are trying to speed up. When people hear reports like this they naturally hesitate in completing a loan transaction to either buy or refinance hoping that what they hear may actually come to fruition. This hesitation could easily cause many people to lose out on a great deal.
Rates are FANTASTIC! Make no mistake about this. For the last two weeks we have had rates that have challenged any rates we've seen in my 40 yrs. There are several factors that contributed to this environment that I won't go into here but needless to say, if you are looking into a loan or a purchase, do it now when you know, with certainty, you are going to get a great deal. Pigs get fat and hogs get slaughtered so getting greedy and pausing to see what happens might be a recipe for not getting a good deal. If you're buying a home keep in mind that you won't be the only one who knows rates dropped to 4.5% if they do. Your seller will know it and expect a higher demand for his home and other potential buyers will know it and be willing to compete for the right home. Believe this, it is far more expensive to get in a price war on a home than it is to get a slightly higher rate. If you are refinancing, how low do you need??? Rates are at a level where after taxes the money is nearly free. I know people who have 25% credit card rates who will wait to see if they can get an extra quarter lower in interest. Again, don't get greedy.
I guess what I am saying, and will continue to say is that you NEED to act today. Rates are very low, prices are VERY low and sellers are hurting. Take advantage of this while you can. I know I am.
Call me if you have questions at 541-342-2535 or email me at jeff@evergreenpacificmtg.com. You can also go online to www.jeffnunley.com .
No comments:
Post a Comment