There is only one realistic contender for the major news item in real estate this week. Mortgage rates are now at their lowest level since June 2013!
As we have examined in other blogs throughout this year, expert predictions in late 2013 all pointed to a steady rise in rates during 2014. Instead, conflicting signs in the economy and international uncertainties have conspired to create a situation where 30 year rates have stayed low and now average below 4%.
This is amazing news for anyone who is currently buying or selling a home and gives the fall housing market a tremendous shot in the arm. Buyers will naturally be keen to move ahead with their purchase to lock in these more than attractive rates.
Traditionally, the fall sees some tapering of interest in buying a home, but it is a total myth that homes stop selling as the holidays approach. Many types of buyer simply don't have the luxury of waiting and press on regardless.
Now that rates have dipped so low, we can all look forward to an atypical fall season of all types of buyers accelerating their home acquisition processes. The risk being, of course, that waiting until, say, the spring of 2015 carries a big risk of missing the boat on these rates, as there is still no doubt that they cannot stay at this level forever.
It's equally true to say that sellers withdrawing their home from sale for the colder months, or those simply delaying putting their house on the market until next year are running a risk that if rates begin to steadily increase, buyer sentiment could take a turn for the worse.
You could almost say it's a case of making hay while the sun doesn't shine so often.
Our advice, therefore, is simple. If you are contemplating buying or selling don't waste a moment. Call us today and discuss the best options in your individual circumstances.