Sales and Interest Rates: More Good News!:
Well, in the past few days more good information has come out. While it is true, that the economy still needs to show a stronger recovery than it has to date, the following is definitely good news for homeowners and those who would like to be.
First, the monthly National Association of Realtors pending sales index showed a sharp rise in the month of July. Up 5.2%, this is the reversal of a downward trend that had persisted since the end of the housing tax credit program expired earlier this year. Will it continue, and how strong will this upward surge be? Only time will tell, but the fact that it has happened is a good sign as, unlike the early spring, there is nothing artificial such as the credit pushing it along. What is probably helping it this time is the record low interest rates.
Speaking of which, as I have noted in the recent past, just when you think the rates cannot possibly go any lower, they DO! For week ending September 2, rates for 30 year fixed loans are averaging 4.32%, down four basis points from a week earlier. If that's not low enough for you, 15 year fixed loans dropped from last week's 3.86% to another new low of 3.83%!
According to Freddie Mac, adjustables also headed in the same direction. Five year ARM's are now averaging 3.54% and one year ARM's are at an unbelievable 3.50%! Like I said here last week, How Low Can You Go?!
What do you do with these facts? If you're a buyer, call your Realtor and find a house--FAST! If you're a seller, what could be better than having a slew of buyers wanting to buy and having access to cheap financing like this? Call your Realtor and get that house on the market--NOW! By the way, in order to get maximum amounts in your buyers' offers, make sure it's all prepped and ready to go. Your Realtor can help you in this way, from minor decluttering to helping you get the home staged.