Are Interest Rates Going Up Or Down?

Any additional interest rate cuts would further weaken the US Dollar. In addition to speculation, a weak dollar is an important factor as to why oil prices are so high, since all over the world oil is traded in U.S. currency. Therefore further fed rate cuts are not likely to happen. And once the dollar begins to stabilize in the world market, you can be sure that further rate cuts will not happen. In fact, this is when interest rates are expected to begin their upswing. A "wait until next year" approach to buying real estate will most likely cost you more than if you buy this year. See next section

Why It's Not Good To Wait:

2008 has low housing prices and near record low finance rates, which has never happened before! It isn't good to wait for housing prices to fall even further because a mere 1/2 point increase in your rate could wipe out a 10% drop in what you would pay for your new home *

Also, with the federal housing bail-out being signed into law, Fannie-Mae and Freddie-Mac are going to get the financial backing they need, as well as at-risk homeowners getting assistance to fend off foreclosure. This is going to reduce the number of foreclosures thus reducing the numbers of homes on the market. When supply drops, prices go up. It's the law of supply and demand. Also, with fewer foreclosures, the homes left on the market will be higher in price. So before this all happens.....

The Best Buyers Market In Years:

Most 30 Year Fixed mortgages can range from 6.125% to 6.875% depending upon your credit score. They are expected to rise as 2008 progresses, but these rates are still near historic lows. Couple that with near record high home inventories and low prices, and it's like the "perfect storm" for home buyers.

Have Home Prices Really Dropped That Much?

The media has reported that home prices have dropped 16% from May 2007 to May 2008. What they fail to mention are the factors that that skew the numbers up. In other words, while the 16% figure is accurate, what has caused most of this drop is the larger number of foreclosures on the market that are listed at a much lower price. In addition, there are far fewer "pricier" homes on the market, predominately including homes selling for $500,000 and up. The loss of these homes on the market accounts for quite a bit of the 16% drop.

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The 2008 Market:

The 2008 inventories are on the rise, rates are still low and home prices have dropped. If you're in the market to buy a home, this is like all the stars are aligning in your favor! 2009 is expected to be a strong housing market but the deals you can make this year may not be seen again for many years to come. There are many bargains out there to be sure, but the really good deals are going fast! So it's in your best interest to not hesitate. And by purchasing now, the equity you can earn in just a few short years could be astounding! Appointments can be made only after you have obtained your lender pre-approval letter (if you're financing). If you don't have a lender lined up yet, let me know as I can advise you there as well! The bottom line is that if you really want to take the step to home ownership, there's never been a better time than now.