Thursday, February 05, 2015

Buyers should Pay attention to the New drop in Mortgage rates

I have an admission to make.  I just refinanced my house in December at 4.125%.  I thought
that I was getting a very good rate, especially since many economists were predicting that the Fed
would raise rates at some point this year. 

Then OIL rates dropped!  That has now been followed by interest rates for 30 year mortgages
going down to 3.5%.  This is over a 10% decrease!  I'm not a mortgage broker, but it seems logical to think that if the rates go down 10%, a buyer should be able to afford homes that are 10% more expensive. 

The signs seem to be trending in that direction.  Despite the cold and the snow homes in the lower price ranges are being shown at a healthy rate, and homes in the $million range are getting offers
within a week if they are in excellent locations or in excellent condition. 

The Superbowl is often the start of our spring season when the weather cooperates.  This year,
we seem to be going in that direction despite the snow.

I don't think that I'll be refinancing, but tell your friends who are looking for a home that they should take advantage of these rates before we start seeing price increases-a likely result if these rates stay
so low.

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