Missing the tax credit deadline
might have seemed like a big mistake for some buyers,
but waiting might have been the smartest thing to do!
might have seemed like a big mistake for some buyers,
but waiting might have been the smartest thing to do!
Who would have figured?!? Interest rates have fallen so dramatically since April 30th, that the typical buyer of a $350,000 home, financed with a $280,000 mortgage, would have saved a bundle by waiting until May!
At April's average rate of 5.34%, a home buyer would have locked in a 30-year fixed rate loan with a monthly payment of $1,561.82. The same borrower could have snagged a 30-year fixed rate loan at a rate of 4.625% in May, and paid $1,439.59 per month. That's a $1,467 annual savings. Over 30 years, it's a $44,003 savings, dwarfing the tax credit!
At April's average rate of 5.34%, a home buyer would have locked in a 30-year fixed rate loan with a monthly payment of $1,561.82. The same borrower could have snagged a 30-year fixed rate loan at a rate of 4.625% in May, and paid $1,439.59 per month. That's a $1,467 annual savings. Over 30 years, it's a $44,003 savings, dwarfing the tax credit!
But why purchase now?
Because Mortgage Rates might not be low for long!
Because Mortgage Rates might not be low for long!
Signs of improving economic conditions (more consumers are paying their bills on time, past-due accounts at American Express declined 34% compared to a year ago, Target reported its lowest delinquency rate in two years during the 2nd quarter, and fewer banks reported tightening lending standards this month), could lead the Federal Reserve Chair Ben Bernanke to raise key interest rates.
If you're in the market to buy or sell your home,
please contact us TODAY
while interest rates are still in your favor!
Information above from Informa Research Services (5/26/10), Bloomberb, Bob Willis and Anthony Feld (5/28/10), and provided through Prudential Gary Greene, Realtors.
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