Sonoma County Mortgage Rate Update: 1/29/10
January 29th, 2010 categories: Mortgage Rates
What if this was the best time to buy a home
in 25 years and you didn’t?
Opportunity with an expiration date!
Historically low home prices!
The Real Estate industry is trying to get the word out to anyone who will listen that this is a great time to buy a home. Yes, that is how they get paid. But there is more here than self interest. The fact is we have never seen such tangible benefits to buying Real Estate as are visible to anyone with eyes wide open.
Home prices are rolled back to levels that make them affordable to many people who just a few years ago were unable to buy. Some say home prices are rolled back to 1980’s prices. Some try to express it by explaining that homes have fallen by an average of 50% in Sonoma County since the highs of just a few years ago.
However you express it, home prices are at a bottom. All you have to do is talk to the Real Estate Appraisers. They will tell you that they are seeing appreciation, however so slight, in many areas. Do you like to buy things when they are at their lowest? Most of us do. Then your time is now.
First Time Buyer Tax Credit!
The Federal Government extended the $8,000 First Time buyer tax credit until March of 2010. In order to be eligible for the $8,000, a home buyer must be in contract by April 30th. This is an amazing opportunity to buy a home and get money for doing it!
Can you imagine what you could do with the $8,000? You could set aside for emergencies, remodel the kitchen or bathrooms, take a vacation, etc. This is a great opportunity, but in order to get the $8,000, you need to get moving…literally!
Low rates!
Rates are going to go up. As many people know, the Federal Government has been keeping rates low in order to stimulate and stabilize the Real Estate market. The prediction is that this will come to an end in March of 2010.
The Mortgage Bankers Association’s Jay Brinkmann has been talking about this for some time now. He recently was quoted as saying his biggest concern going forward is what happens to the mortgage market when the Fed stops buying Fannie loans. Apparently, at last report, the Fed was buying 100 percent of their loans. Where are the other investors? Either they still don’t want mortgages or the Fed is pricing them out of the market.
What does this mean to you?
Brinkmann said, “We don’t know if rates will go up 20 basis points or 40 or far more,” says Brinkmann. A jump like that translates to rates as high as 1% over present rates. How would you feel if you ended up with a much higher payment if rates jump?
The point?
The point is all of these reasons are opportunities for you if you are thinking about buying that home anytime in the near future. But hear this…this is an opportunity with an expiration date.
Mortgage Rate Update…
Rates moving up! Rates moved higher this week on better than expected financial news!
Rates for the week ending 1/29/2010
- FHA loan with a minimum of 3.5% down, for a person buying a personal residence with a FICO score of 620 or better who would be locking for 30 days. 30 Year Fixed Rate 5.125% w/5.34 APR
- Conventional Loan with a minimum of 10% down, for a person buying a personal residence with a FICO score of 740 or better who is locking for 30 days. 30 Year Fixed Rate 5% w/5.29% APR
Call team “WineCountryMoves.com” today!
Happy buying!
This article was contributed by Dave Raffi, Regional Manager of Mission Hills Mortgage, 707-303-2933.
