Time to Purchase Can Be Now, Find the Right Short Sale and Move!
In the 70’s, my father laughed when I bought a house and paid such a high interest rate. I believe it was 8%. When I started in Real Estate in the 80’s the rates were as high as 18%. However, now it is as low as when my father purchased in the 50’s. Do you realize that if I purchased a $300,000 home in the 80’s, I would be paying the same monthly payments as if I had purchased a $900,000 house?
I don’t know if buyers realize what a deal they are getting with these rates. Even if homes decline, this is the time to buy. In essence, if the rates go up, the homes will still cost the purchaser more to sustain.
The rates will be this low as long as the economic climate is poor in Europe and China and they are having economic difficulties. When things improve, rates will start increasing. Investors are staying away from European and Asian markets because they have lost money due to the conversion rates. In other words, last year if they invested $1.25, they got back $1.15, which is not much of an investment.
Mortgage lending institutions are just not that busy since most people who could refinance did already. Also, buyers rushed in to get the tax credits. Californians, that leaves you to purchase while that $10,000 tax credit is still available. Now is the time to purchase.
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