We’re currently experiencing historically low mortgage rates. Over the last fifty years, the average on a Freddie Mac 30-year fixed-rate mortgage has been 7.76%. Today, that rate is 2.81%. Flocks of homebuyers have been taking advantage of these remarkably low rates over the last twelve months. However, there’s no guarantee rates will remain this low much longer.
Whenever we try to forecast mortgage rates, we should consider the advice of Mark Fleming, Chief Economist at First American:
“You know, the fallacy of economic forecasting is don’t ever try and forecast intere...
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Whether you are a seller or a buyer in the real estate transactions, you must always thing in the long term of the real estate market. There are several factors that can influence tomorrow’s market and you must be prepared for both ups and downs. To sell your home for a profitable price, you must ensure that your house in good condition. This is because, buyers usually look for homes in to which they can move in immediately without having to get many things repaired. However, if you are relocating, then you must decide whether you wish to sell your current home and buy a new home in the new lo...
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Hats are off today to Sacramento’s Michael Choe, 43, a supervising engineer with the state Department of Toxic Substances Control. This week he earned his second appearance in Time magazine since 2005 – for making good calls in this crazed real estate market.
Choe sold high in 2004.
He rented for four years.
He bought low in 2008.
As the housing crash continues, Choe’s is the ultimate wish-we-had-done-that tale.
In September 2004, as the market soared (the median price was 25.6 percent higher than the same time a year earlier in Sacrame...
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July 22 (Bloomberg) -- U.S. home prices had the smallest annual drop in 10 months, signaling the free fall of property values is abating in the three-year housing slump at the center of a global recession.
Prices declined 5.6 percent in May from a year earlier and rose 0.9 from April, the Federal Housing Finance Agency in Washington said today. Economists expected a 0.2 percent drop for the month, according to the median of 16 estimates in a Bloomberg survey.
“We saw a rebound of home prices in some parts of the country in part because the share of distressed sales dipped,”...
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The economic optimists are still in charge of markets, rates and stocks still rising. However, the divergence is widening between them and those worried about credit and latent weakness. It may take a month or two to figure whose stubbornness has merit.
Markets first, then new economic data.
The 10-year T-note has jumped to 3.85 percent this morning, the highest since last fall, and even two-year Treasurys rose in yield...
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Sacramento-area homeowners and prospective first-time homebuyers might be wondering: Did we miss the boat on mortgage rates?
The short answer from experts is: Probably, but rates are still very attractive.
For 10 weeks, mortgage rates were riding well below 5 percent on 30-year loans, but housing and industry analysts speculated that many first-time homebuyers and homeowners looking to refinance existing mo...
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The Case for Buying a Home Right Now
Low interest rates and very flexible prices make this a good time to be a buyer.
By BRETT ARENDS - WALL STREET JOURNAL
Talk about capitulation! Judging from my mailbag following last week’s coverage of the Case-Shiller housing numbers, almost nobody has a good word to say about the real estate market any more.
I’m an instinctive contrarian. So I hope readers don’t take it the wrong way when I say that when so many of you agree with me, I start to get nervous.
And where is my hate mail? The brokers must b...
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According to Daily Real Estate News, April 27, 2009, Some economic analysts say that the possibility that the economy will go into overdrive and inflation will skyrocket is a much more frightening possibility than the current recession.
One inflation hedge nearly all of them point to is real estate. Owning it outright is the best scenario, but if that’s not possible, a low-rate, 30-year fixed mortgage is the next best thing. As inflation drives up salaries, mortgage payments will stay the same, analysts point out.
Source: USA Today, John Waggoner (04/24/2009)
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