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How Low Can They Go?

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Real Estate Agent

 

 

This past Thursday, reports came in that mortgage interest rates had continued their decline to the lowest level in decades.

According to the weekly report from Freddie Mac, the 30-year fixed rate declined to 4.44%.  That's the lowest since Freddie began tracking in 1971.  A year ago the rate was poised at 5.29%.

The interest rate for 15-year fixed rate mortgages felt to a mere 3.92% representing the lowest since 1991, when Freddie Mac began tracking.  And down from the 3.95% rate available the previous week.

CNN Money presents a more detailed report written by Hibah Yousuf, about these latest mortgage rates, and about surveys Freddie Mac and Bankrate.com perform, in conjunction with the larger lenders across the country.  It can be accessed via: "30-Year Mortgage at Lowest Rate Since 1971."

Homebuyers in this market are dwelling in an astonishing window of time.  Affordable prices and interest rates have come together to create a perfect storm for home-buying opportunity.

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Myrl Jeffcoat ActiveRain Signature
  

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Nancy Timberlake
RE/MAX Shoreline - Portland, ME
REALTOR - Southern Maine

Rates are great!!  Buyers should be hustling to get that home they want!

Aug 14, 2010 10:11 AM
Jack Mossman - The Nines Team at Keller Williams in Stockton
The Nines Team At Keller Williams - Stockton, CA
The Nines Team at Keller Williams in Stockton

Myrl:  While the prices and financing opportunities can't be beat (...maybe I should wait until next week before I say that...) BUT confidence is almost at a all time low as well.  The media tells us that the bottom hasn't been hit, the government tells us that we have "help" programs in the wings, and lenders are blamed for changing rules daily.  Both agents and lenders are having a hard time keeping current - so it is small wonder that buyers may be holding back. 

Your resources are great - thanks so much for sharing.

Aug 14, 2010 10:11 AM
Bob & Leilani Souza
Souza Realty 916.408.5500 - Roseville, CA
Greater Sacramento Area Homes, Land & Investments

You're absolutely right, Myrl...now is a great home-buying opportunity for the right buyer! :)

Leilani

Aug 14, 2010 11:50 AM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

Nancy - I continue to remember the 18 1/2% interest rates of late 1981 when I first got into the real estate business.  We could even imagine today's rates.

 

Aug 14, 2010 12:32 PM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

Jack - So much of our economic future hinges on consummer confidence, and more importantly, JOBS!

Aug 14, 2010 12:32 PM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

Leilani - You're absolutely right!  For homebuyers with the capacity to buy now, the opportunities are great!

Aug 14, 2010 12:33 PM
Andrea Swiedler
Berkshire Hathaway HomeServices New England Properties - New Milford, CT
Realtor, Southern Litchfield County CT

Myrl, you are so right, it is the perfect storm!!!!

Aug 14, 2010 12:42 PM
John Thomas
E3 Green HOMES - Boulder, CO
EcoBroker, MSEE, MBA

It is amazing...hard to imagine them going much lower but you never know. I suspect they will level out and hover on the low side for quite some time.

Aug 14, 2010 01:02 PM
Sandy Shores FL Realtor®, Melbourne Real Estate
M & M Realty of Brevard Inc. - Melbourne, FL
Brevard County Real Estate, Florida's Space Coast

Myrl, Low interest rates are great news in this market.  I hope that buyers will get out there and take advantage of it while they can.

Aug 14, 2010 01:37 PM
Richard Iarossi
Coldwell Banker Residential Brokerage - Crofton, MD
Crofton MD Real Estate, Annapolis MD Real Estate

Myrl,

With rates that low, I really don't understand why so many buyers are sitting on the sideline.

Rich

Aug 14, 2010 01:37 PM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

Andrea - If all storms were as perfect as this one, I'd say let it storm:-)

Aug 14, 2010 01:50 PM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

John - I can't imagine these interest rates will rise anytime soon.  We really need to get folks back to work first.

Aug 14, 2010 01:51 PM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

Sandy -It seems every market we have been in, buyers have waited for "the bottom" - whether it's with interest rates or prices.  There is a segment of those buyers that will begin to finally jump when interest rates or prices begin to escalate.

Aug 14, 2010 01:53 PM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

Richard - I think many of them are simply afraid to buy.  They don't feel secure in their jobs - especially in areas hard hit by unemployment.  Another segment probably would like to buy, but because of credit problems are unable to.  For some reason, I'm feeling better about this coming spring!

Aug 14, 2010 01:55 PM
Michael Bergin
Coldwell Banker Residential Brokerage - ABR - SRES - Alexandria, VA
Northern Virginia Real Estate

Myrl -

Despite the low rates it's hard to overcome the sensation that the other shoe is going to drop anytime.  What we need is a gigantic wave of optimism.

MB

Aug 14, 2010 03:05 PM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

Michael - You're absolutely right!  We need a gigantic wave of optimism!  Like one person told me the other day, "I have no confidence that Wall Street isn't running some Ponzi or Credit Default Swaps scheme that 99% of Americans are unaware of, and we could be doing the collapse of October 2008, all over again!"

Aug 15, 2010 06:43 AM
William Johnson
Retired - La Jolla, CA
Retired

Hi Myrl, It is hard to believe these rates, isn't it. It seems odd that the market feels as quiet as it does the last few weeks. Perhaps it is our great weather. There doesn't seem to be much fear that rates will jump significantly over the next 60 to 90 days, if my take on the Bernanke speech is what the policy will remain to be. The market should seem " HOT" instead of luke warm.

Aug 16, 2010 07:17 PM
Jane Herron Realtor® Coaching Leadership+Sales
Meet Jane Herron your Success Trainer on Retainer (past Productivity Coach + New Agent Trainer for Keller Williams) - Salt Lake City, UT
Chart Your Course Leadership Training for Women!

Myrl: I like the post so much I owuld like to re-blog it.  Thanks - jane herron

Aug 20, 2010 08:22 AM
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