Time and again in recent years, we’ve seen mortgage rates take a fall and stimulate the entire real estate market.
Well, it looks all set to happen again.
Last week 30-year fixed rate mortgages took the biggest one week drop seen in a decade!
This news follows a sustained period of rate falls and should be warmly welcomed by buyers and sellers alike.
For buyers, the benefits are very clear. There has recently been more resistance to asking prices, due to affordability issues and, clearly, a fairly dramatic fall in mortgage rates can only help to reverse that trend.
For sellers, it’s a wonderful opportunity to capitalize on the wave of enthusiastic buyer sentiment that is likely to continue for as long as rates stay at such a relatively low level.
Better yet, the timing of this key market development simply couldn’t be better, in the early spring as the real estate market heads toward its busiest period.
Last week’s big fall means that buyers will be out and about in force right now, looking to lock in a low rate while they still can.
Of course there are no guarantees how long rates might stay this low. However with the Federal Reserve making noises that it is not likely to raise the cost of general lending this year, there is currently much speculation that we just might see an extended period of very favorable home borrowing terms.
The really good news is that, for those buyers and sellers willing to act now, we are once again in a win-win situation that looks likely to produce an even better market than we had been envisaging not so many weeks back.
Why not contact The Hyland/Schneider Team today at 928-445-2100 for the best advice of what to do in your individual situation.