Don’t be a fence sitter! Home-buyers should act sooner rather than later.

Did you know that the Feds do not determine the mortgage interest rate?  This largest determining factor are bonds.  We watch the 10 year bond.  The Feds determine the short term rate at which banks loan to each other.  If the Feds keep rates artificially low for too long and the public feels like the economy is improving they will take money out of bonds and interest rates will go up.  If the Feds raise rates too early the public may flock to bonds for safety and the rates will go down.

If you were to buy a home today at current rates under 5% you would have a super good rate and save long term interest.  If you wait till the interest rates go up 1% then you would have to buy your home for a full 10% less to have the equivalent payment.  In addition the long term cost of the loan goes way up.   Fence sitting is for the BIRDS.

CALL THE JONRON REAL ESTATE TEAM.

This entry was posted on Tuesday, February 16th, 2010 at 11:56 am and is filed under Advice on real estate, Contest, Good news, Short sales, market statistics. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.