On Tuesday I posted a blog titled, "Buyers - What are you waiting for?"   It addressed the number of homebuyers sitting on the fence waiting for the proverbial "bottom" to arrive in the housing market.

Comments from readers to that blog mentioned concerns about past housing cycles where homebuyers had waited, only to be caught up in a cycle of escalating interest rates and home prices.

This morning while reading an article titled, "Mortgage rates rise to 4.46 pct. As economy lifts," I could almost hear refrains from Elvis Presley's old song, "It's Now or Never."

This week, reports of strong economic indicator data are pushing fixed mortgage interest rates upward again, after hitting their lowest level in decades last month.

The average rate for 30-year fixed mortgages escalated to 4.46% from 4.40% available last week.  The rate hit 4.17%, three weeks ago, the lowest rate on records dating back to 1971, according to Freddie Mac.

For homebuyers continuing to sit on the fence, this should be seen as a warning, that escalating interest rates could quickly increase mortgage payments.  Couple that with any bounce in home values, and the proverbial housing "bottom" could be missed.



Real Living Great West Real Estate
(916) 635-0420
http://www.myrljeffcoat.com

 

 

 
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27 Comments on Waiting For the Bottom - You Could Be Missing it

20 Most Recent Comments Displayed Show All

DEC
02
2010
937,015 Points 51 Featured Posts Called Shot Master

Cathy - I think the improved shopping numbers during the early part of this holiday season coupled with the interest rate increases because of economic indicators provides some insight that we may be at, near, or moving away from the bottom. . .Whatever that means. . .LOL
9:05pm • #8
492,232 Points 8 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Myrl, Your posts on this subject are so right on, and it is amazing how the general public is paralyzed by the media. 

Gloria
9:39pm • #9
937,015 Points 51 Featured Posts Called Shot Master

Doug and Gloria - I was glad to see the early holiday shopping numbers inch up from last year.  Consummer confidence is what it takes to get this economy rolling once again. . .AND jobs, jobs, jobs.
10:02pm • #10
540,443 Points 6 Featured Posts Outside Blog

Hi Myrl:

By the time buyers realize that the market hit bottom, it's already coming back up!

It's a great time to buy now!
11:51pm • #11
DEC
03
2010
1,090,654 Points 201 Featured Posts Outside Blog Hit Router Attended Rain Camp Called Shot Master

Hi Myrl, Well said ! Perhaps the fence sitters are getting their financial advise from those that see the morning Sun as " too intrusive" and the full Moon as an  "evil threat". Little wonder they are confused.
1:27am • #12
584,338 Points 1 Featured Post Outside Blog Attended Rain Camp Called Shot Master

I like the freeway sign with all the arrows.  But I'd setetle for just three arrows:

 

We need to talk about not one but three bottoms.

There is the price bottom and there is the interest rate bottom.

 

And then there is the most important bottom:  the combination of the price and the interest rate bottom.

That one may have already happened.
6:02am • #13
466,662 Points 2 Featured Posts

Myrl - leave it to someone with your extraordinary sense of vision - lterally and figuratively to present this so well. I love the ELVIS song It's NOW OR NEVER - I am reblogging this great piece. Well said, and iillustrated.
7:18am • #14
1,390,385 Points 27 Featured Posts Hit Router Called Shot Master

The truth is, you won't know that we've reached the bottom until well after the bottom has been reached.
7:49am • #15
937,015 Points 51 Featured Posts Called Shot Master

Toula - Ain't it the truth!  It really is a great buying window of opportunity.
9:22am • #16
937,015 Points 51 Featured Posts Called Shot Master

William - Confusion does seem to rule the day!  Sorting through the data to chart a solid course can be difficult at times.  Especially when there seems to be an over abundance of conflicting information.
9:24am • #17
937,015 Points 51 Featured Posts Called Shot Master

Jim - I like your analysis of the "3 bottoms". . .It kind of make one think they need to go to the gym. . .LOL  But, your words are so true!
9:27am • #18
937,015 Points 51 Featured Posts Called Shot Master

Janice - Thank you so much for the reblog.  It is greatly appreciated!  I'm also grateful for your kind words!  We both miss the King, so I guess that kind of makes us kindred spirits:-)
9:28am • #19
937,015 Points 51 Featured Posts Called Shot Master

Gabe - Your words have a metaphysical truth to them.  There has only been one bottom in the last decade that I ABSOLUTELY knew was there when I reached it.  It was the bottom of a swimming pool that I dove into, which was a tad more shallow than I had expected:-)
9:31am • #20
565,608 Points 29 Featured Posts Outside Blog Attended Rain Camp

Myrl, Great post and great reminder.  Many buyers have been waiting for the bottom, but will they realize it when they see it? Probably not. It's a great time to buy.  I am working with a buyer that is closing on an investment property on Monday, getting a 15 year mortgage at 4.375!  Incredible! 
7:01pm • #21
619,607 Points 10 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Myrl, I think many buyers are getting the message. I'm working with more buyers now than any other December that I can remember. This get my reblog vote; more people need to learn what you stated simply and eloquently.
11:45pm • #22
DEC
04
2010
611,282 Points 40 Featured Posts Outside Blog Called Shot Master

Myrl, I'm fairly sure that the rates will drop again after the newest unemployment rates came out this week.  However, they historically climb until February as many markets close down for the holidays.  That being said, what's anyone waiting for?  Rates are down.  Values are at 2003-2004 values or below in many areas of the country. Good blog.
12:58am • #23
937,015 Points 51 Featured Posts Called Shot Master

Sandy - Congratulations on the pending closing of that investment property.  That 15 year rate is amazing.  I was thinking the other day that when I got into this business in November 1981, the interest rates were 18%. . .LOL
9:28am • #24
937,015 Points 51 Featured Posts Called Shot Master

Lottie - Thank you for the reblog.  It is greatly appreciated!  As you and I know, markets are cyclic.  Even if home prices don't go up, interest rates can, and any savings on price will be offset on mortgage payments because of interest rate increase.
9:31am • #25
937,015 Points 51 Featured Posts Called Shot Master

Juli - That is also my thinking regarding the effect of unemployment rates.  Somehow, I have it in my head that many businesses hired for the bulk of the holiday season in October, not November.  I'm anxious to see figures that come out in early 2011.
9:33am • #26
1,344,201 Points 71 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

You know, at this point those who still claim to be waiting for the bottom can't be serious about buying a home!
5:06pm • #27

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Myrl Jeffcoat

Sacramento, CA

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