This Month in Real Estate August 2010

This Month in Real Estate August 2010 has been released.

As I mentioned in my July 15 post, “Mortgage Rates at Lowest Point in Five Decades,” mortgage interest rates have dropped to their lowest level in the past 50 years. On July 29th, that number was 4.54%! Freddie Mac’s current average interest rate is at a historic low of 4.6% — right at the lowest since it began recording in 1971 (but up from Thursday!).

While it is tempting to wait for a price for a home to drop, what tends to happen is that when prices drop, interest rates rise. Therefore, your payment, even if the price of the house is lower, may be the same or higher than it would be right now!

Contact me more information on buying a Baltimore home using historically low interest rates!

Mortgage Rates at Lowest Point in Five Decades

Mortgage rates are at the lowest point they have been in five decades.

The national average is 4.57% for a 30 year fixed conventional loan.

MSNBC reports that:

Rates have fallen over the past two months. Investors, concerned with the European debt crisis, have poured money into the safety of Treasury bonds. Treasury yields have fallen and so have mortgage rates, which tend to track yields on long-term Treasurys.

Though the rates are very low, many people have already taken advantage of the low rates that have been in place for months now. These rates also don’t include add on fees, which Freddie Mac reports right now theirs are averaging about 0.7% of the loan amount.

Others are not refinancing due to the fact that they actually cannot. They have less equity in their home than is on their current mortgage, and do not have the money to make up the difference. So despite the possible lower payments, these distressed people cannot take advantage of the historically low rates.

Many Baltimore homeowners are in the same situation, putting them at risk for a short sale if they need to sell.

People who have been on the fence about buying a home should consider the moment to be now. With rates this low, plus Baltimore home prices being so low, there has rarely been a better time to buy!

If you are ready to buy a Baltimore home, contact me today to take advantage of these incredible low interest rates.

Mortgage Rates Drop Very Low

Mortgage rates drop very low — below 5% — as international money comes into the United States. The US bonds are seen as a safe haven in light of the financial troubles in Europe, and this is having a nice result in our country.

The Wall Street Journal reported this morning that interest rates were quoted at 4.86% on Friday. According to the Journal:

Falling mortgage rates can give a powerful lift to the housing market. A general rule of thumb holds that every one percentage point decline in mortgage rates effectively lowers home prices for buyers by roughly 10%. So, if the current rates hold, say economists, that could help stabilize prices and allow current homeowners to sell existing homes without substantial price cuts.

This is great news for the Towson real estate market because lower interest rates usually mean more houses selling.

There was concern that interest rates would rise above 6% as the Federal Reserve’s mortgage securities program is coming to an end. Add onto that the end of the Homebuyer Tax Credit, and the real estate market looked bleak for the summer.

Now, with the interest rates being so low, it can make homes much more affordable for many buyers.

It makes this truly a fantastic time to buy with interest rates at historic lows and housing prices so low as well. Contact me to take advantage of these low interest rates and get into your new Baltimore home!