Rates DOWN Again: Sales UP!
Well, it's becoming a regular item--mortgage interest rates have dropped again. At this rate the only news on rates will be when they eventually go up. To reverse paraphrase Newton, everything that goes down, must eventually go up. This week saw 30 year fixed rate loans priced at 3.49%, which equals the all time low for the product. For 15 year loans, the rate dropped to a never before level of 2.77%! It almost makes me feel sorry I refi'd a few months back at just over 3.5%. There is some speculation, based on the Fed's pledge to keep buying mortgage backed securities to the tune of $40 Billion a month, that rates could conceivably drop below 3% for 30 year money, possibly to 2.5%. Most of the folks in the know do not feel that it is likely to drop that far, however. The going consensus appears to be that it very likely will drop to the low 3's, but probably not too far below that. Is 3% breachable at all? Maybe, but not by very much, and not for very long. This is especially true if the economy continues to improve, particularly in the housing industry.
Speaking of the housing industry, the latest statistics for the Bay Area in general and Marin county in particular shows a continued increase in the prices of homes. Total sales are down slightly from a year ago, but that is mainly due to some reluctance by some homeowners to place their homes on the market for a variety of reasons. Some are worried about the economy; others want to wait to get more for their homes, and so on and so on.
Followers of this blog know my opinion on the matter. Yes, you may get more by waiting, though no-one can guarantee that. But there are so many buyers out there, cash in hand due to low rates, that multiple offers have begun to become somewhat common again. This will drive prices up on a deal by deal basis. Why shouldn't the home they're competing for be yours? It can be if you list it.
If you're a buyer, these rates are one of the best reasons to get out and get moving you'll find! For every 1/4 per cent drop in rates, you can buy thousands of Dollars more of a house. Why waste an opportunity? Do it now!
Questions? Call either of us: Jane is (415) 531-4091 and Peter is (415) 279-6466.
Now, if you'll excuse me, it's time to Skype with my grandsons.