Have we reached the bottom?
The reason why Donald Trump is so successful and has made millions in real estate is because he has followed one simple mantra throughout his life, "Buy LOW. Sell HIGH." As for Buyer purchasing power, this IS the bottom of the Real Estate market. And, yes, I'm aware that you may have heard this before, but please read on...
The 30-year fixed mortgage rate fell to a new low of 4.54% this week. Last week at this time it was at 4.56%. On average over the last year, it has been hovering around 5.25%.
The 15-year fixed loan rate also hit a record low to 4%. A week ago at this time it was 4.03%, compared to this time last year, which was 4.69%.
The five-year adjustable-rate mortgage is averaging 3.76%. It was at 3.79% last week and 4.75% a year ago. One-year ARMs averaged around 3.64%, which was down from 3.7% last week and was 4.80% a year ago.
Everyone who is studying the economy is saying the same thing, "Interest rates are getting ready to climb." I realize the public has been desensitized by the media's constant declaration that "With interest rates at historic lows, NOW is the best time to buy!". However; I will tell you that in my expert opinion, I also believe that interest rates will soon be on the rise (within the next 3 months or so - just enough time to find your perfect home & lock in your interest rate) and will rise quickly. I also believe they will not come back down for quite some time.
So, these are the facts Mr. & Mrs. potential Buyer's:
1. Lending regulations are getting tighter, requiring more and more of your money up front and out of pocket as the days go by. The ability to even qualify is getting tougher as well.2. With foreclosures, short sales, and REO's at an all time high, properties are selling cheaper than ever before. You can buy an amazing house for less than you've been able to in years.
3. Interest rates ARE at their lowest TODAY and will soon be upward bound.
You may not have the first-time buyer incentives anymore, but with the reasons I've stated above, you don't need them. (Besides of which, I offer a guarantee to my Buyers anyway: "I'll save you AT LEAST $8,000 or I'll GIVE you my commission!")
I would strongly urge you, if you have been considering a home purchase, for your sake, get off the fence my friend. If you don't, you may still have some advantages to your home purchase later but NOTHING LIKE YOU COULD TODAY. We all want our money to go as far as it possibly can. Now is the time to invest in your economic future - for yourself and/or your family. If you don't purchase a home within the next couple of months, you will be kicking yourself that you missed "The Bottom" for Buyers and now you can't afford the car you wanted too or the size of house you really needed.
If you have questions about this or any other Real Estate matter, feel free to contact me. You can also find great resources, tools and information on our website.
Natalie Flaming
Realtor - Broker Associate
Email: Natalie@TheVIPofOKC.com
http://www.TheVIPofOKC.com
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