If you’re considering buying a home at all in the near future, you’ll want to know that mortgage rates came down huge on Tuesday. When I first heard the news, it was from a mortgage broker I know, I told him “the only way that could happen is if someone finally started buying mortgage backed securities”, which there haven’t really been buyers for in any significant numbers since August ’07. Sure enough, I found out later that the government is spending $600 billion (note the “b”) to purchase these things. That is an incredible development that brought rates down to around 5.375% for a 30 year fixed rate under $417,000.
People who should really consider buying a home right now are first time homebuyers, or those who have not owned a home for the last three years. For these people, you have low rates, low downpayment options, and the $7500 first time homebuyer tax credit (also for those who have not owned for three years or more). Oh yeah, and did I mention that home prices are way down. There are four really good reasons!
--Ward Spears
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