Courtesy of WSJ, by way of Freddie Mac
We get that question about a handful of times every week. Just like the real estate market, the answer is rather pat. We won’t know until things start going up when we have hit the bottom. The bottom will be in our rear view mirror by the time we figure it out. Back to the mortgage market. It’s hard to imagine things dropping further as it relates to rates. We are already in unchartered territories considering we are at all time lows. Current 30-year averaged rates sit at 4.85%, the lowest point figure ever recorded since Freddie Mac started recording in 1971. You can take a look at the chart above for an indication of how far we’ve come in the last year.
Everyone is trying to “time” the market, whether its in real estate, in mortgage rates, the stock market, etc. It’s impossible to time the market. Like playing with fire, sooner or later you are going to get burned. A recent Reuters report reveals some interesting insight from one of the mortgage insiders, John Koskinen, the head of Freddie Mac. Koskinen “said on Friday that U.S. home loan rates are near their bottom and any further decreases will be small.”
So, the moral of the story here is that you don’t want to let the bottom pass you by. It’s a great time to buy real estate. It’s a great time to refinance if it’s financially feasible for you to do so. We are lower than low at this moment. Rates are lower than they have been in over 37 years. It’s been said that a roughly 1% rise in your interest rate is comparable to paying 10% more for your home. It’s hard to imagine a better position to be in. If we can help you take advantage of this market, we would love to help. www.thepeterscompany.com