The CEO or Freddie Mac, Ed Haldeman, recently gave a speech to the DetroitEconomic Club regarding a number of issues including the state of thecurrent Real Estate market. According to Mr. Haldeman we are in a “transition to a recovery”.He went on to state that the two main factors were the stimulus packageand the fact that the Fed was keeping interest rates at record lows.
One statement he made during his speech was particularly interesting to me. He said that he expected the 30-year mortgage fixed interestrate to remain between 5% and 6% throughout this year. Even if theydid rise to 6%, the interest rate would still be a record low. When Iwas a mortgage banker/broker prior to going into Real Estate back inthe early 90’s , 7.5% was a GREAT rate!
However, I was discussing the interest rate issue today with a buyer awaiting an answer on an offer. He clearly stated that if interestrates rise much above 5%, he’d be out of the market for the house hedesires.
We may be only 2 months into 2010, but in today’s market it may take several months to search, find, make an offer, and open escrow on abuyer’s “dream home”. If interest rates go up at the end of this yearor the beginning of next year, the amount of house a buyer can affordwill in turn go down.
NOW is the time to buy!
As we all keep hearing, interest rates are at “historic lows”. But pardon me for sounding a bit like a retail shop owner when I say, “these rates won’t last forever”. We need to get buyers off the fence and into the market before they regret not buying like so many buyers before them.
Are you a buyer looking for a home?
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By the way, if you or someone you know is at risk of losing a home to foreclosure, please know that there are new options available toavoid this devastating occurrence. And know that there is someone hereyou can trust to help. As a Certified Pre-Foreclosure Specialist, Iunderstand the ins and outs of Short Sales and Loan Modifications. I amalso a Wachovia and World Bank trained Pre-Foreclosure expert and welleducated in the Government’s new H.A.F.A. and H.A.M.P. programs forhelping homeowners facing foreclosure.
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