Opportunity of a Lifetime

I wanted to show you a history of what mortgage rates have been doing over an extended period of time, and the history of how “sitting on the fence” can bite you in the very thing you (or your client) have been sitting on (I’m addressing both potential buyers and real estate professionals in this blog entry).

Below is a chart of what 30 year mortgage rates have been doing on a monthly basis since the year 2000. We have 8 years worth of interest rates. Right now, we’re looking at the lowest interest rates since the year 2000. These are actually the lowest rates since the Federal Reserve started keeping track in 1971. Now is the time to buy a house. This is not the time to wait on the interest rates.

Just look at the next chart. From 2003 to 2008 there have been four times that rates fell below 5.75% and each of those four times, when rates bottomed out, they shot up as much as a full percentage point. So, whether you’re a buyer waiting to save another 10th of a percent on your rate, or you are a real estate professional and have a client who is doing the same, you need to take a hard look at this chart and realize that the risk, far out weighs the reward for such a gamble.

y final chart shows the trend in home prices, year over year. Five different sources show that home prices have been declining downward consistently. Most sources claim this slide to be in double digit figures. So, combine the rates being at their lowest point on record and house prices that have been reset to the prices of about 20 years ago and it’s the opportunity of a lifetime! What are you waiting for?

I could go on and on about this market, the return on investment for real estate vs. any other investment, interest rates, and so on, but the long and short of it is, now, more than ever, you need to get serious about closing on the purchase of a home. If you’re in the market to refinance and you’re waiting for rates to get down under 5.00%, how will you feel if that doesn’t happen and rates go up to 6.00% and you missed your opportunity?

Whether you are a real estate professional, a potential home buyer, or someone in the market to refinance, please consider giving me a call to go over any of this information as well as getting your ducks in a row for this opportune time. Call me in the office at 401-671-6500, or cell (in RI) 401-651-2716), (in MA) 774-278-0885.