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Will Record-Low Interest Rates Keep Homebuyer Interest Alive ?

By
Real Estate Agent with The Shafer Real Estate Team, Keller Williams Louisville East

          It was predictable but still made the headlines:

          The Washington Post braces America for the bleak news:

New-Home Sales Plunge 33 Pct with Tax Credits Gone:

"Sales of new homes collapsed in May, sinking 33 percent to the lowest level on record as potential buyers stopped shopping for homes once they could no longer receive government tax credits.

The bleak report from the Commerce Department is the first sign of how the end of federal tax credits could weigh on the nation's housing market."

The tax credit was definitely a B-12 shot in the arm of an anemic housing market. 

So now what?  That ship has sailed.  What can be done to keep buyers excited about finding a great buy in today's competitive market?

Freddie Mac is hoping that record-breaking interest rates could be the answer:

Rates for a 30-year fixed loan declined to 4.69 percent this week from 4.75 percent.  The previous record was 4.71 percent, set in the week that ended December 3.

The average 15-year rate was 4.13 percent.

It's important to get this message out:  When you consider these incredibly attractive rates, combined with the fact that Sellers are more competitive and negotiable than they have been in years, it's still a great time to buy !

 

Jacki and Jerry Shafer are mega-agents with The Shafer Team and Keller Williams Realty.  They specialize in residential sales in Louisville, Kentucky, and surrounding Oldham, Shelby, Trimble and Henry Counties.

 

 

Comments (3)

Carolyn Kolba
Serving Mentor, and all of Lake County, Ohio - Mentor, OH
Keller Williams Realty- Mentor, Ohio

Jacki & Jerry, I really don't know.  With rates as low as they have been, buyers have become spoiled.  They have no clue how high the rates were ten years ago.

Jun 24, 2010 05:56 PM
Wade Kawahara
Dominion Real Estate Partners, LLC - Phoenix, AZ

Even with the low rates, it will be a tougher market.  The tax credit was really a boon but now buyers are expecting more and more before they pull the trigger.

Jun 24, 2010 06:04 PM
Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

We are seeing a bit of a slow down.  But we do appear to be returning to a more normal market.

Jun 24, 2010 06:51 PM