How many times have you heard that “Mortgage rates are at historic lows!”?
You’ve heard this line when rates were at 6.50% and 6.00% and 5.50%. You’ve heard it so many times it may not even register anymore. However this time it’s really true.
Many people have seized the opportunity to lock in mortgage rates below 5.00%. While rates as low as this are historic, the opportunity will not last forever. Most likely we will continue to hear about record low rates, but we will not continue to have access to them. For example, mortgage rates below 5.00% were readily available from mid-December until mid-January. Then, all of a sudden, they started to move up above 5.00% and have stayed at that level for several weeks.
The good news is there are many factors that may be pulling rates back down to the record low level. There is information indicating that parts of the new stimulus package will focus on the housing market. According to Yahoo News, Senate Minority Leader, Mitch McConnell, R-KY, was quoted as saying “a stimulus bill must fix the main problem first and that’s housing.” By creating initiatives to reduce mortgage rates the government will make homes more affordable and more attractive to buyers. The Federal Government also has a plan in place to purchase mortgage backed securities from the two mortgage giants, Fannie Mae and Freddie Mac, which will also have a positive impact on rates.
At this moment, an individual ready to purchase a new home or investment property is walking into a “perfect storm” of opportunity. A buyer’s market coupled with “historically low” interest rates is giving new homeowners and real estate investors much better values then they could have dreamed of only a couple of years ago. With a little money saved up for a down payment there is no reason to sit on the sidelines and wait for a better time to buy. The time is now, and we do not know how long it will last.
How do you take advantage of this opportunity? Contact a lender you trust and a real estate agent with experience and knowledge of your area. Talk to people who have recently purchased a home. The tools required for a successful investment in your future are all around you—you may see some of them in The Realty Press. www.therealtypress.com
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