4.500% Mortgage Rates
Mortgage rates are hovering near 5.00%. These are the lowest conforming fixed-rate mortgages we have seen since 2003. Economic weakness and recent actions by the Fed and the Treasury are driving these rate declines.
The Fed and the Treasury are looking at additional programs to boost the economy. On December 3, the Treasury confirmed that it is considering a plan which would offer below
market mortgage rates for select loans used to PURCHASE homes. The lower rates would NOT be available for refinancing loans. At this point, it is unclear if, when, or in what form this latest idea will be acted upon. As we have seen recently, most notably with the $700 Billion TARP Rescue Plan, government programs often change significantly before their implementation.
My Advice - Take the amazing rates paired with lower housing prices and maximize your investment opportunity in your primary residence or investment real estate.
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Hi Steve,
ReplyDeleteWelcome to the blogosphere!
As a buyer's agent this year I've been able to negotiate no less than 3% towards closing costs on all of my transactions. Those credits can be used to buy down a 5% rate to 4 3/4% or 4 1/2 while our market is still favorable to buyers.
If we were to have 4.5% rates readily available, it might be enough to shift our local market enough in some price ranges to become a very competitive atmosphere for buyers, where they won't be able to negotiate the credits we are getting currently.
In short, buyer's agents should be able to make 4.5% rates a reality for their buyers by negotiating in some extra seller paid closing costs.