No Time Like Today
Author: Denise Turrisi
Written On: Mon, 26 Apr 2010
No time like today…
To purchase your next home. While those historical low rates set a few months ago are not here to welcome us into the spring housing market, it is still a great time to purchase your new home.
The Federal Reserve stopped its emergency $1.25 trillions dollar program to buy mortgage debt; the result is now a trend towards increasing interest rates. In light of this halt by the government, the Mortgage Bankers Association anticipates a continuous rise in interest rates, with the 30-year mortgage rate going to 5.5% by late summer and as high as 6 percent by the end of the year.
According to an April article in the New York Times written by Nelson D. Schwartz, “The shift is sure to come as a shock to consumers whose spending habits were shaped by a historic 30-year decline in the cost of borrowing.”
In that same article, Schwartz notes that the bottom-line impact will be psychological fallout from not being able to buy more while paying less. Inevitably, that seems to be the quagmire we are now in.
As a mortgage broker, even the lowest rates of the day I can offer to a client don’t satisfy a desire to get the most for their home buying dollar. There are two sentiments, the “if” and the “if only.” If I wait longer, maybe rates will go down. If only, I purchased last year. There is a frustration of having missed the boat on those historically low interest rates and hoping to catch the next wave of a decline.
In October of 1981, interest rates peaked at 18.2%. On a $100,000 loan then, a monthly payment equaled $1,523 as compared to $556 today. As Schwartz comments, “No one expects rates to return to anything resembling 1981 levels. Still, for much of Wall Street, the question is not whether rates will go up, but rather by how much.”
Rates are available now well below 6.0%. Sellers are willing to negotiate on their asking price, some even willing to contribute between 4-6.0% off sales price on qualifying buyers. With market conditions as they are and where they may go, there is no time like today.
Take advantage of today’s rates before they go up.
Reach out to one of our exceptional mortgage brokers at Signature Financial Mortgage, 201-760-2700 because there truly is…
No Time Like Today!
