I have been telling everyone that would listen that "NOW" is the time to buy the house you want. Interest rates are great, prices have leveled off or dropped a bit (in the Eugene area), and even if the price on a $250,000 home dropped another $10,000, a rate change of 3/8 of a percent would make nearly the same payment anyway.

Well, we have just seen mortgage bonds fall to their worst levels in 2008. We have also seen rates increase about 3/4 of a percent, instead of 3/8. So, has it done any good to wait?

Being an Oregon boy, I was raised to hunt and fish and often watched the sportsman shows on TV. It always amazed me when someone would pass up a 5 point buck because they wanted something bigger. I hunted for food and knew that the 2 point buck was probably better eating anyway. So, was it wise to pass up the 6% interest rate while waiting for the 5.5%? Are you eating venison tonight?

There are a lot of ways to say it, but when I talk to my clients about interest rates, I always advise that they lock the interest rate where it is. Why? Because, if something happens, the worst thing that will happen to them is that they get the rate they have locked. Same thing goes when deciding on if it is the right time to buy that home. What I can tell you is that the worst thing that will happen is you get the home you want at an interest rate you want to pay. I can't promise what the future will bring.

Eugene/Springfield has not felt the huge decreases in value that have been seen in Southern California and elsewhere because our economy is stable and people continue to move to this area. We have more listings now than before, but we had so few listings before anything would sell, often with multiple offers. Although it is a buyer's market, properly priced homes still sell fast, sometimes even with multiple offers.

So, jump in, the water is fine.

 
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5 Comments on Interest Rates

Thank you for publishing a positive post. Our buyers and sellers need to hear that we can get them where they need to be.

07/18/2008 11:59 AM by Vickie Nagy, Realtor, Specializing in San Ramon, Danville & the Tri-Valley! (Empire Realty Associates)

Hey Fred, Nice post.. I lOVE your analogy about hunting, some folks are just into trophies when hunting - same thing with houses.. I wish I was in a better position to be taking advantage of all the bargains now.. God bless,

07/18/2008 01:26 PM by Cheryl Gilliam Home Staging-Hickory NC (Just Heavenly Decor & Design)

Hello Fred, A wonderful informative and articulate post,Fred. One thing I noticed is that when it comes to rate locks, many lenders will also allow that if the rate did drop, the consumer could get the lower rate.That may be changing but you are correct in that dealing with what ones knows today, may certainly provide a better comfort lever than playing the roulette game of waiting and wondering. Because the market is a bit sensitive for a while, I would also encourage my clients to lock just as soon as they know they are moving ahead with the decision on a specific purchase. Well done and we are delighted to have you as a part of this group that recognizes that about all else, it is about the consumer and giving them the benefit of our best counsel. They will reward us because they trust us that we know what's in it for them and then we provide access to it.

07/18/2008 01:49 PM by San Diego Real Estate Voice authored by William Johnson GRI CRS e-PRO (RE/MAX Associates)

Vickie, Thanks for the encouragement. I truely believe anyone in a position to buy right now, should buy. What a wonderful opportunity.

Cheryl, I, like you, wish I were in a position to take advantage of the deals out there. Those with money and insight will definately come out ahead in this market. Thank you for the blessing too, it is well received.

William, Thanks for the welcome to the Internet Group. I really think that the more consumers know, the better decisions they can make. I hope to be posting more "good" information in the future. As to you question, sometimes "float downs" are available, but should never be counted on. Locks protect everyone.

07/18/2008 04:58 PM by Fred Chamberlin - Eugene/Springfield's #1 Experienced Mortgage Consultant (Alpine Mortgage Planning)

Fred, great post I would have to agree that now is the time to buy!

07/20/2008 02:17 AM by * Rate A Home (Rate A Home)

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Loan Officer: Fred Chamberlin - Eugene/Springfield's #1 Experienced Mortgage Consultant (Alpine Mortgage Planning)
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