The Latest Info:
Well, once again, mortgage rates dropped to a new all-time low last week! For 30 year fixed fully amortized loans, the average rate dropped to 3.40%, while 15 year money dropped to a rate of 2.73%! What can I say? It is getting ridiculous, but, as long as the Fed continues to try stimulating the economy by holding rates low, and the economy maintains its very slow recovery, this trend is likely to continue.
As far as the market is concerned, properties continue to sell rapidly due to the combination of these low rates and a continued lack of inventory for buyers to choose from. This is obviously still very beneficial for sellers. However, buyers won't be harmed by the low rates. Remember, for every drop in interest rates, you are able to afford more house. It's that simple.
If you're NOT looking to sell your home, but can still afford the purchase of real property, you may want to enter or expand your investment property holdings. For rental property, although rates are a bit higher than rates for your own home, loans still are at historic lows! Further, if you own rental property, you likely will be eligible for a variety of tax benefits because of this property. These can include depreciation, tax losses and other related items, along with the appreciation that you are likely to achieve over time. Check with your accountant on the tax aspects--and call US to find the property! If you already own rental property, but want to upgrade to a bigger investment, it may be time to consider doing an exchange. We, working with your CPA, can help guide you through the intricacies of the process so that you improve your property portfolio and avoid extra taxes while doing so.
On the other hand, maybe you're not looking for rental property, but have always wanted that cabin at Tahoe, or a beach home to escape to after the work week is over. With these low rates, now is the time! Call us today and enjoy your vacation home tomorrow--regardless where it is!
remember: Peter's number: (415) 279-6466; Jane: (415) 531-4091.