We are in the midst of some of the cheapest money we will ever see.
Thank you what a great article along with the issues that there are not short sales and foreclosures like there us to be. I agree now is the best time to get back into real estate, money is cheap, home prices are rising and inventory is low and very sought after which is bringing our prices back up.
We are in the midst of some of the cheapest money we have ever seen, and will likely ever see in our careers. Our mortgage guy, Greg Schneider of PHH Mortgage, tells us, just this morning, that rates have turned back down... and we're seeing conventional money in the mid 3%'s... (around 3.5%)...and jumbo money in the mid 4%'s (around 4.5%)... dependent, of course, on the borrower's credit.
That's some cheap money, folks.
When my wife and I were first married, and bought our first condo, (back in the Jurassic period), we had a couple of choices... we could get a 30-year-fixed, 8.75% mortgage.... or we could opt for a 30-year-fixed 8.75% mortgage (just like Henry Ford... you could have any colour we wanted... as long as it was black!).
Cheaper money means that our buyer's mortgage payments will be lower, or that they can afford to reach a little higher, and purchase a property with a higher purchase price.
Does that translate into "This is a great time to buy?". Well, that depends entirely on the situation of your buyers... but we're not going to see money this cheap for a long, long, time. And we're starting to see prices rise, and how far behind that, do you think, will we start to see interest rates begin to rise?
We owe it to our clients to pass on this information. While our clients are smart people (well, most of them), and they read the papers, and watch the news... they may not be as aware of these historically low rates as we are, because we are immersed in it, day after day. Spread the news, folks.
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ALAN MAY, Realtor®
Specializing in Evanston Real Estate and North Shore Real Estate
Coldwell Banker Residential Real Estate, 2929 Central Street, Evanston, IL 60201
847.425.3779 Cell: 847.924.3313 Email: Almay@aol.com
Evanston Real Estate & North Shore Real Estate • Licensed in Illinois
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