Now how did I manage to miss April? Time flies when you are having fun! Right now, the alledged recession and the housing crunch seems to be on everyone's mind. The fed's dropping the rate did not bounce in the favor of interest rates as much as lenders like myself had hoped but we are seeing some relief. Moment to moment rate updates show that we are still on that home loan percentage rate roller coaster.
My advice to you? If you are at all in a position to buy, do it. Don't walk, run to your local lender. Rates will not get lower over the next 4-6 months. In fact they may get higher. And if I am wrong? You can bet they will increase in 2009. What are my predictions? I don't think we are on our way to the 13% rates we saw in the 80's but I do think the days of the low 5%'s are a thing of the past for awhile. Never say never. Credit is an issue with many potential home buyers today.
Lending investors are not as forgiving of credit issues and sub-prime rates have been replaced with FHA programs. It is possible for a first time homebuyer to get into a property with little to no money down with a motivated seller paying closing costs, yes, even FHA. I'd be happy to explain the particulars of this program if you are interested.
Let's not forget the big picture. We are still looking at conventional rates in the low to mid 6% range. These are still great rates. Take advantage of this if you can. Yes, home values are dipping for a bit. But if you plan on making your home purchase a long term investment, you can bet that as the value has dipped that it will again rise.
If you live in the states of Oregon or Washington and I can be of any assistance to you or help you prequalify for a loan, don't hesitate to call me. 541.786.1613 or email me at CBarber@primeres.com. Good luck and it's not as bleak as it seems.