Dons' musings about O Fallon Mo : First Time Home Buyers: Mortgage Rates Above 6% By Christmas

First Time Home Buyers: Mortgage Rates Above 6% By Christmas

Mike has made some very important points for first time home buyers to consider.  If you are asking the question, "Should I buy now?" here is the answer to your questions.

Image courtesy www.Sendoutcards.com/MikeInTucsonSomeone told me yesterday they expect that the administration will extend the $8,000. first time homebuyers tax credit into the new year.

That's an $8,000. bet I wouldn't take

Here's why:

  • Interest rates are likely to be above 6% for 30 year fixed mortgages by Christmas.

    • The liquidity crisis that many believed was in check when 30 year rates fell to as low as 4.50% in April is far from contained.  It could come back with a vengeance.

    • Major bank failures continue to lurk on the horizon.
      New York based CIT, a major lender to small and midsize businesses according to Bloomberg, is likely to declare bankruptcy on Friday, July 17th.  The Fed is betting that it won't pose "a systemic risk" to the economy if it fails.
  • Volatility in the bond market can provide opportunity for buyers who are prequalified and ready to act.

    • Today's 4 basis-point drop in the 10 year bond provided an opportunity for some borrowers to lock a better interest rate than has been available in the past three weeks.

If you're waiting to pull the trigger on a real estate purchase, it's time to act. 

 ___________________

I'm Mike in Tucson, your preferred Tucson, AZ Mortgage lender.
Mike Jones (Tucson Mortgage Company, LLC): Loan Officer in Tucson, Pima County, Arizona
Call me if I can help you with a purchase or refi mortgage;
(520) 349-9090

Image courtesy www.SendOutCards.com/MikeInTucson

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Don Rogers is a licensed REALTOR® in Missouri.  I specialize in St. Charles County Missouri and have called O Fallon MO my home since 1993.  If you are looking to buy or sell or you are relocating to the area and would like information about the St Charles County MO area do not hesitate to give me a call at 314-954-6775 or if you would prefer to send me an email.

 

Comment balloon 12 commentsDon Rogers • July 16 2009 10:05PM

Comments

Yikes!  Better BUY NOW in order to avoid the questions as to whether the interest rates will rise (which there's not really any other way to go but, UP!) or the tax credit will be extended!  Here's hoping that it remains for another year to generate more first time buyers but, we can't count on that.

Have a great Friday, Don!

Debe in Charlotte

Posted by Debe Maxwell, CRS, Charlotte Homes for Sale - Charlotte Neighborhoods (www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310) over 9 years ago

Good morning Debe,

I am thinking that first time home buyers should be moving in what we know for sure and that is the tax credit is ending on Nov. 30.  Prices are still good on homes and now is the right time to buy.

Posted by Don Rogers, Realtor, Broker, CDPE, GRI, OnullFallon MO & St Charles County MO homes (Keller Williams Realty Chesterfield) over 9 years ago

I agree, you bet on this administration, you lose your &^%. They have no clue.

Posted by Terry Miller, Miller Homes Group and Tyler Apartment Locator (Miller Homes Group) over 9 years ago

Don - Definitely the time to get moving - well at least shopping and buying.

Posted by Ryan Shaughnessy, Broker/Attorney - Your Lafayette Square Real Estate Partner (PREA Signature Realty - www.preasignaturerealty.com) over 9 years ago

It's certainly time to take advantage of the current credit and mortgage rates if you can. Time is running out fast and an extension is not a promise.

Posted by JL Boney, III, Columbia, SC Real Estate (Coldwell Banker) over 9 years ago

ToulaRosebrock,com

Hi Don:

And to remind buyers...

It's a great time to buy now!!!

Posted by Toula Rosebrock, Broker/Sales Associate, Realtor, Lacey Township, (Diane Turton, Realtors, Forked River, NJ) over 9 years ago

Terry,

I am thinking that there will be more conversation than action by this administration.

Posted by Don Rogers, Realtor, Broker, CDPE, GRI, OnullFallon MO & St Charles County MO homes (Keller Williams Realty Chesterfield) over 9 years ago

Ryan,

Time is quickly running out and folks need to start making a move or it will be too late.

Posted by Don Rogers, Realtor, Broker, CDPE, GRI, OnullFallon MO & St Charles County MO homes (Keller Williams Realty Chesterfield) over 9 years ago

JL,

You are very right my friend now is the time to start making your plans to be in your new home before Thanksgiving.

Posted by Don Rogers, Realtor, Broker, CDPE, GRI, OnullFallon MO & St Charles County MO homes (Keller Williams Realty Chesterfield) over 9 years ago

Toula,

Now is the time to buy that new home or forever hold your peace.

Posted by Don Rogers, Realtor, Broker, CDPE, GRI, OnullFallon MO & St Charles County MO homes (Keller Williams Realty Chesterfield) over 9 years ago

Don - certainly time to get moving if a buyer is planning to take advantage of the tax credit and lock in a good rate.

Posted by Mike Saunders (Lanier Partners) over 9 years ago

Mike,

I am thinking that there will be a lot of people that will be left behind because they thought that the tax credit will be extended.  They do need to act now for sure.

Posted by Don Rogers, Realtor, Broker, CDPE, GRI, OnullFallon MO & St Charles County MO homes (Keller Williams Realty Chesterfield) over 9 years ago

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