A Brief Window Opens
A little extra purchasing power, for a short while
After hearing that the Federal Reserve is not going to taper off on it’s purchase of mortgage backed securities and will continue it’s 85 billion dollar a month bond buying habit, I am relatively certain we will have a dip downward in mortgage interest rates, albeit briefly. What this means is a slight but significant, short-term increase in buying power for buyers not afraid to act quickly. For home buyers who have not taken a look at the residential real estate market post-Labor Day, take note of another advantageous position: a serious drop in active home seekers.
A little more power and a little less competition between buyers
If there is ever a real life example of the benefits of going ‘against the grain’ and seeking out homes to buy as we leave a very busy summer market and head into a more-than-expected slower fall market, we are looking at the personification of it right now. It will take speed and decisiveness as a home must ideally be selected (even appraised) before a buyer should ‘lock’ an interest rate with a lender. Put another way, if a buyer is willing to move quickly and decisively, they will have a shot at getting a better bang for the buck which might disappear in less than a month.
The tools and resources are there, so no hesitation please
As the economy improves, as the rule of thumb goes, mortgage interest rates climb higher and conversely buying power shrinks lower. The ‘sweet spot’ is being in a reasonable financial and credit position just ahead of the recovery trend, enough that the buyer can capitalize on lower mortgage rates in the case rates currently artificially lowered by the Federal Reserve announcement reversing the earlier decision to reduce purchasing bonds (which spurred the early July rate spike). Not since the onset of the financial crisis have mortgage loans been easier to close and not since last winter have their been this few buyers, a sharp contrast to the summer frenzy. If you want to seize a moment of slightly increased buying power, there is no room for hesitation, let's get started quickly!
Sylvia Harsin
714-612-5373
Sylvia@sylviaharsin.com
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