Just a note to show you how important it is to move when you make a decision to buy or sell--As you all know, the purchase or sale of a home is definitely affected directly when interest rates change--up or down. While rates have been rising in the past couple of months, they have remained quite low overall, recently peaking in the low 5's (5.25-5.35%). However, to illustrate how dramatically this can change, the rates dropped a week ago by a few basis points. Even better, this past week, they dropped again to 4.87% for 30 year fixed rate loans. Why the sudden reversal? Look to Libya! That's right--Libya! Due to the instability there by the burgeoning civil war between those who feel that 42 years of Khadaffi is more than enough and those who'd prefer more of the same (God forbid), oil prices have spiked to their highest levels in 2.5 years, passing the century mark to close March 4 at over $104 a barrel. When something like this happens, it drives investors out of commodities and into 'safer' investments--like US Treasuries. As the value of the Treasuries rises, it drives their yield (read interest rate) down, with the result that mortgage rates, which are based on 10 year Treasuries, also drop.
What does this mean for you? If you're a buyer, don't walk--RUN to your lender or mortgage broker and get that loan approved and buy a house! No-one knows how long this bloodshed in Libya's going to continue, but it's fairly safe to say, no matter who wins, it won't last forever. This is an opportunity for all buyers to act on!
If you're a seller, knowing that rates are down should be a spur to you to get your home on the market to have it available for the growing number of approved buyers out there looking to buy.
So what are you waiting for? Get moving! Unsure what to do next? Call us! We'd be happy to assist you with everything from preparing your home to sell, to getting it sold and closed.