We see so many potential home buyers nervous to buy because of all that the market has seen and lost in the past two years. BUT, with that being said, if you are thinking of buying….THIS IS THE TIME TO BUY! Last Wednesday, the Fed bought over $300 billion in US Treasuries and over $750 billion in mortgage backed securities – this should insure that mortgage rates remain low for an extended period. This move by the Federal Reserve has created the greatest buying opportunity for the housing market since the Great Depression – most likely the best opportunity we will see in our lifetimes! The Fed is inflating their way out of this big mess. Experts are saying that with real estate prices depressed and interest rates low, mortgage rates should come down to 4%, thus creating that double bonus, LOW PRICES & LOW RATES! Just think about the affordability index too at these low rates – how much more house can you buy with at 4% then 5.25%? Answer: The interest at 5.25% on a $500,000 loan will support a $656,250 mortgage loan at 4%. At this rate buyers can either afford more or lock into an interest rate that they will never see again.
Please keep in mind that good things do not last forever. Eventually,this ‘monetization’ will cause interest rates to rise and most probably for the US to enter a period of inflation. Interest rates will rise as things get more expensive. You as a potential buyer have a great window to get a great deal – KJ Premier urges you not to miss out!
BENEFITS OF BUYING NOW:
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First time home buyers can capitalize on $8000.00 tax credit
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Record low housing prices
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Low, low, low mortgage rates
Please keep in mind that our ability to help you is dependent upon understanding your particular needs and wants with regard to finding a home. So, when you are ready to explore your real estate needs further, KJ Premier will be happy to assist you. Contact Wendy Johnson and Kelly Karls at kjpremier@atproperties.com today!
This blog’s great!! Thanks
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