It's time to wake your buyers (shoppers, lookers, etc) up, and remind them that these are the good ole' days. In many markets home prices are stabilizing and there are good buys to be found in every market.
But the latest reason to buy now is just around the corner. Interest rates continue to creep up each period even though the Fed has held one arm of the reserve rates for a while. Though there is no direct correlation between the overnight rates and average mortgage rate, don't expect that disassociation to continue when the Fed starts to raise rates in the future. TheStreet.com recently stated that most bets are on the Open Market Committee to hold rates at the August meeting, but September has better odds on a .25 increase in the Fed overnight rate. So the recent trend in mortgage rates should continue to slip upward (reminds me of gas prices) and with pending deep Congressional investigations of the mortgage industry, pressure will be on the markets to continue to tighten on mortgages. Loan applications numbers continue to fall and originators are trying their best to get people qualified.
So with all that said, it's time to remind those sitting on the fence that NOW is the time to buy. The tradeoff between waiting on a slightly lower asking price on a property may soon not offset the risk of the continued rise in mortgage rates.
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