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.
Someone 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.
- 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.
Image courtesy www.SendOutCards.com/MikeInTucson
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.