Interest Rates are LOW, but how LOOOW can they go?
50-YEAR LOWS FOR MORTGAGE RATES = GREATER AFFORDABILITY AND SAVINGS FOR TODAY’S HOMEBUYER
Housing and Urban Development (HUD) Headquarters
Fixed-rate mortgages continue to hover at 50-year lows, thereby supporting home buyer affordability. Compared to the recent peak in 30-year fixed interest rates 13 months ago (week of June 11, 2009), current rates are a full percentage point lower.
To give you an idea of what this means to a buyer today compared to a year ago, today’s home buyer would save about $1,500 in payments each year on a $200,000 loan compared to what a home buyer paid last June. Saving $1,500 a year for 30 years amounts to $45,000 today’s buyer will save with these UNBELIEVABLE rates!
The $50 dollar question is, “how long will rates stay this low?”.
Now what economic news is coming out this next week that we should be watching that helps us answer this question?
- Housing starts data comes out on Tuesday and the general consensus is a 0.5% drop. Housing starts data is a leading indicator of the state of our economy meaning consumers tend to hold off on the purchase of new homes, new cars, and other big-ticket items if they are worried about the future of the economy.
- Existing home sales comes out Thursday. Expectation is a 9.7% decline in this number due mainly to the expiration of the home buyer tax credit program.
From my view of the market, being in the trenches everyday, housing starts I believe will be lower (closer to 1% if not more of a drop) and I would say the existing home sales being down 10% is pretty much right on.
About Russ
Whether you are buying or selling your home, my goal is to get you the best price, in the shortest amount of time, and with the least inconvenience for you.
* Superior customer service is having your phone calls returned promptly, keeping you informed on what is happening with your home, and being on time for appointments.
My clients say it so much better than I: “Your referral of the home inspector was appreciated as well. Most of all you had time for us. You returned phone calls promptly and kept your appointments with us as well.” Jeff and Rafia R., Naperville
* I am recognized as a “Certified Real Estate Negotiator” in addition to my years as a CPA ensuring you get the best price possible.
For buyers, I am very knowledgeable about all types of financing and mortgages; from the conventional to the exotic making loan qualification easier for you. And I offer buyers Exclusive Preview, giving you a heads up on homes before they get posted on the MLS. Working knowledge of foreclosures and short sales as well.
For sellers, my Award Winning 14 point Marketing Plan BLOWS away my competition! I offer proven marketing strategies to get you the results you are looking for in today’s challenging market. Plus, the absolute best Internet presence you will find anywhere.
In addition, you will benefit greatly from my exclusive Salability Checklist which focuses our attention like a laser on what we need to do to get your home sold.
My professional staging and inventory knowledge assist both my buyer and seller clients by saving them time and money.
Investors appreciate having a professional Realtor that understands financing, taxes and how to get your deal closed.
Lastly, as a past member of the Illinois CPA Society, I know the value of ethics.
I am a full time professional Realtor serving real estate buyers ,sellers and investors in the Fox Valley and western suburbs including Naperville, Aurora, Plainfield, Bolingbrook, Lisle, Woodridge, Oswego, St. Charles, Geneva and others.
