I’ve been in California for the Thanksgiving holidays, spending some special time with family and relaxing quite a bit. Today, we are heading back home and with a deadline or two, I’m up early getting caught up on the news.
Did you know that there was a home interest rate drop of 1% on Friday? This is huge!
The Federal Reserve’s announcement Tuesday that it would spend $600 billion to buy up mortgage-backed securities sent interest rates plummeting roughly 1 percentage point, the biggest single-day drop in years.
I picked up the news that Paying for home just got cheaper from AZCentral, and the example they used will catch buyers attention:
….required monthly payments on a 30-year fixed-rate loan for $200,000 decreased to $1,135 from $1,264 when the interest rate dropped to 5.5 percent from 6.5 percent.
That’s a savings of $129 a month, which equals $1,548 a year, or $46,440 over the term of the loan.
And while the lenders interviewed for the article didn’t necessarily agree on the impact that this interest rate reduction would have, I do believe that there are buyers who have been waiting and watching the market trying to time their entry or re-entry into the home ownership market. First-time home buyers are in a very good situation right now. No home to sell. $7500 federal tax credit loan. Many homes to choose from. If someone if purchasing today in Scottsdale with the intention to own their home for an extended period of time, now might be a good time to research the market, especially if they have any type of home fix-up and repairs skills.
My inquiries for home evaluations have picked up this weekend. And buyers continue to fly into town, looking for good values. The homes are out there, and financing them just got a little bit easier.
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New post: Home interest rates drop big time. – http://is.gd/9FxD