The AP reported this morning (article on Yahoo News) that the average rate on 30 year confirming fixed rate loans fell to 4.71%, the lowest level since Freddie Mac started tracking the data in 1971. (Actual rate quotes tend to be a bit higher than the Freddie Mac averages, and I've never quite understood why, but most lenders I looked at this morning were sub-5%.)
This is good news for buyers, as their carrying costs for a house are lower. And the low rates also encourage homeowners to refinance higher rate loans, but they have more of a problem as the house has to appraise under current market conditions.
It is all relative.
It's either lower rates and higher price now or lower prices with higher rates later.
The difference is that the bargains will be more frequent in the future.
For now, it seems more worthwhile to rent.
Posted by: JGrim | December 03, 2009 at 12:17 PM
Drop rates down to 1% and it doesn't change the fact that prices have yet to fall further.
Even at 0%, I don't want to pay the price they are asking. I will even pay cash if need be.
Wellcome back Carter!!
Posted by: Josef | December 07, 2009 at 02:34 PM
I agreed wit Josef.
Happy holidace,
Fritz
Posted by: Fritz | December 09, 2009 at 08:34 AM
Josef is yet another to enter the game of stalemate. I have a house I'm interested in selling but not at what buyers are currently willing to pay. Maybe sellers need to come down a bit, but maybe buyers need to come up a bit. No hurry - the renters are covering the carrying costs. Will I end up in the hole as a result? Anyone's guess at this point. Will be interesting to see where things settle out once the foreclosures and distress sales are no longer used as comps. I would guess that will be the case in late 2010 or into 2011.
Posted by: Ken | December 09, 2009 at 12:49 PM