June 8, 2010

Why Now Is the Perfect Time to Buy

Have you considered buying or refinancing a home right now?  Well if not, you might want to consider it because the optimal time is....you guessed it....NOW! Check out these numbers below

How is this possible you ask?

Well in fact, many economists were expecting interest rates to shoot up when the Federal Reserve stopped buying mortgage backed assets in March.

However, when  investors saw the European market start diving ..ahem (Greece, we're looking at you buddy!), they got scared of putting their money there and thus retreated to the safety of U.S treasury Securities, which consequently act as a barometer for long term mortgage rates.  It's simple supply and demand.  When the demand for the securities goes up, the price goes up and this in turn drives down the interest rates.

What does this mean?

For buyers, it means you're in the sweet spot for purchasing a home.  Not only are getting to choose from a surplus of homes on the market at incredibly low prices, the interest rates are right there to match.  Unfortunately, this little window of opportunity isn't going to last forever.  Many economists suggest mortgage rates to stay below 5% over the summer and possibly move up to 6% by the end of the year.   With the expectation of the E.U reconciling their financial mess within the next year ( or at least start to), unemployment rates dropping, we can also expect the interest rates to rise even more. Additionally,when the unemployment rates drop (which hopefully will be in the next 6 months), folks will have more money to buy homes, increasing the demand and ultimately price.

So whether you're aiming to purchase a new home, purchase a Bellingham wa home loans mortgage or  simply refinance the home you're in now, you could save yourself some major doe by taking advantage of this market.

For all your real estate related needs, I'm only 10 digits away (7 if you exclude the area code) 360-920-1218!  I can also be contacted through email @ briddick.webb@exprealty.com, facebook at facebook.com/briddick or by smoke signal!

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