Wow,
I know my last blog touched on low rates, but I wanted to get some real numbers behind it. Looking historically at Freddie Mac's PMMS (Primary Mortgage Market Survey) Data -- PMMS Data -- we are seeing the best loan rates in nearly 3 years. Only twice in 2005 was the monthly survey data lower than it was last week - and not by much. Here is a look at the last two years and the current rate as of last Friday, January 17th, 2008.
Look at the red BOX on the bottom left a little lower than halfway between 5.8% and 5.6%. Actually, it was sitting at 5.69% last Friday. In real terms lets say you were buying an average house in the Tallahassee Real Estate market - $220,000. Let's say you got a decent interest rate of 6.5%. This would make your principle and interest payment $1,390 per month. IF you wanted that same payment today, you could buy a $240,000 house and have ALMOST the same exact payment. Alternatively, you could buy the same $220,000 house for a principle and interest payment of $1,275 per month.
So, if someone asks you if now is a good time to buy a house, the facts say it is more affordable than it has been for the past two years. Couple these great rates with ample selection and motivated sellers and one can certainly see some advantages to buying now.
Comments(1)