If there's one thing we've all learned for sure, it's that we truly are in a Global economy. Unrest, like the continuing financial problems in Europe, affect investor mentality across the world. Here in the US, investors are looking toward US Treasury Bonds as safer investment options. This pattern is sending mortgage rates lower and lower, with the 15 year fixed rate reaching 4.2% - a new all time low. The 30 year rate is about 4.79%. Some think it's possible rates could drop further, and perhaps bring the 30 year fixed to a new all time low (lowest on record for 30 year fixed is 4.71%).
For those thinking of buying, selling, or refinancing, here's what it means - borrowing money has never been so cheap. Now is the time to do it.
Refinance if you're in at a higher mortgage rate - why not make your home more affordable to live in?
Buy - If you're thinking of buying, don't put it off. You can afford more home now than you could a year ago. For every 1% increase in your interest rate, you qualify to pay 10% less for a home. Let's say today you have your eye on a home that is $500,000. If rates increase 1%, and you want the same mortgage payment, you'll have to find a home that costs you no more than $450,000.
Sell - Values have been climbing recently, and buyers have buying power now. It's a great time to sell. If (perhaps we should say WHEN) rates increase, it could potentially put further downward pressure on prices for those sellers that really need to sell... and if that is not you, you could be in your home for a long while waiting to "ride out" the storm. And, in case you're still in denial, we're not likely to see conditions like we did back in 2005, and if we do, it is not going to be anytime in the near future.
For a private consultation about buying or selling, please contact me directly:
703-669-3142
