Today in a response to the looming recession the Fed cut rates by ¾%. This is a very steep cut and more are expected. The usual suspects declared this would have no impact on the mortgage market, but today the mortgage interest rates went down ¼%. I suspect more will be coming
The combination of low prices and lower interest rates could make 2008 a banner year for first time home buyers and investors. I believe the market will bottom out this year because of these factors. Lenders and the government are already taking action to head of the foreclosure crises and keep people in their homes. I do not think prices will shoot up rapidly when it bottoms out, (Although watch for my next Blog on Catching the Bounce.) but now may be the best time to buy. Right now there are a huge number of homes on the market. Pricing often has little bearing on condition or the comps, because prices are falling so fast there is a problem setting prices. Now is the time to find the bargains.
To find the best home for you, you need to be working with a Realtor who knows the market and can share with you what all the comps are like. As noted in my earlier Blog some homes are getting multiple offers. You need a smart and hard working agent to help you find the real bargains.
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