Everywhere you look there is doom and gloom in the media about the housing market and the general state of the economy. It’s easy to loose site of some of the best interest rates in history happening right now. According to Freddie Mac, last week rates fell to about 5.5% and have only been lower in 2003, 2004, and in 1959. In the 1980’s interest rates peaked at 18%. In the past 2 decades, rates have fluctuated between 6% and 10%.
You have probably noticed that sellers are getting beaten up out there due to a buyer’s market. So what should you do?
If you are selling, it is most beneficial to price your home down instead of up. It is also important to carefully check out your competition. If you want your home sold in the next 90 days it will take better pricing and better presentation. If you are having trouble paying your mortgage, it’s important to act quickly. Try renegotiating with your lender. Although they may reject you, keep calling back until you get someone to say yes. If that doesn’t work, contact your REALTOR® about doing a “short sale.”
There are limitless opportunities for buyers right now. Large inventory means great selection, more bargaining power, and better deals then we’ve seen in a long time. Lower interest rates translate into lower monthly payments. For first time home buyers, there are still zero down programs and free grants available for those who qualify. Consider buying your first home or an investment property this year, because rates will eventually trend upwards and the market will return to normal. One final thought, our services are always free for buyers.
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