One of the most exciting opportunities for buyers today is the increasing availability of mortgages at historically low interest rates. Conforming 30 year fixed rate loans up to $729,750 at 80% loan-to-value cost as little as 4.375% with no points. Jumbo loans up to $2,000,000 with the same parameters are available at 5%. Today's combination of low rates and low, stabilizing home prices creates a uniquely affordable marketplace in which both property and mortgages are not just "for sale", but "on sale". These low rates will not last indefinitely, and their rise will immediately impact market affordability; for example, a 1% increase in interest rate generally means that a buyer's purchasing power decreases by $100,000. It is only a matter of time before mortgage rates and real estate values begin to rise together.
(Courtesy Pacific Union International) . If you are considering the purchase or sale of a home, I would be pleased to review these ideas with you and help you decide how you might take advantage of this unique market.
