The New York Times declared last
month that, after several years of erroneously
sunny pronouncements, there are concrete signs “the housing market is starting
to recover.” The Wall Street Journal ventured even further with a story and
tweet declaring "the housing bust
is over." Have the
banks finally dredged through the glut of, seemingly endless, foreclosures? Underwater homes are holding the market
back. With some 6 million homeowners
delinquent on their mortgages, the shadow inventory of distressed
properties continues to be an anchor on the housing market. In
everyday language, the housing market still has one foot in the darkened
trees and one foot in the sun-drenched clearing, some analysts say. Are rates at
the low and about to climb? Rates on the 30-year loan have been
below 4 percent since early December. The low rates are a key reason the
housing industry is showing modest signs of a recovery this year. A drop in
rates could also provide some help to the economy if more refinance. When
people refinance at lower rates, they pay less interest on their loans and have
more money to spend.
These are
all questions we ask ourselves as we look to buy, sell or refinance a
property. Nobody likes making a decision
to purchase and a week later come to find the same product is cheaper the day,
week or month after we bought it. At
least a home isn’t technology and won’t be obsolete and outdated the moment
after you buy it. Now it’s time to go into decision mode on a home, we all want to buy at the bottom or sell at
the top with the lowest interest rate in history that nobody else has ever
received or will ever receive again. We need to be realistic though, buying at
the bottom and selling at the top need to be more relative than absolute. You
will never find the extremes unless you are blessed enough to hit it by divine
will, our genius is not enough. When making these decisions, land on a rate or
dollar amount you will be pleased with and or that fits within your budget and
regardless of any future changes you will surely have peace regarding your
decision.
Cell 714-889-8421
Direct 949-870-4014
