If you are looking at getting a home, right now is the time to do it. There are, sadly, a lot of foreclosed properties on the market at discounted prices. Numerous homes are for sale. These are the kind people just have to get off their hands. There is also a lot of inventory to move. Right now, 30 year fixed rate mortgages have very low rates. So if you want to get low interest loans for a home, now is the time. Also, right now is a good time to look at mortgage modification.
Record low rates for mortgages
The 30 year fixed rate mortgage rates are lower than they ever are. Freddie Mac has kept track of the data since 1971, and the current market rate of interest for 30 year mortgages dropped this week to 4.36 percent from 4.42 percent, as outlined by Bloomberg. Granted, these are low cost loans compared to several years ago, but the rates aren’t exactly on unsecured loans. A 30 year mortgage is what we are looking at. Right now it is 3.86 percent for a 15 year mortgage. At this rate, 30 year mortgages will be at that rate by Thanksgiving.
Plenty of inventory to move
As of right now, there is a greater supply of homes on the market than there has been since 1983. The real estate market has a 27 year all time high supply of homes for sale. Getting homes is something less individuals want to do right now. Reuters reports that many are trying to refinance when a 15 year low of home sales has been hit. Now it seems difficult to get credit from money lenders. Also, if you have a bad credit score, you can say goodbye to any hope you had at getting a home.
Buy cheap and sell expensive
However, if you have the credit and a down payment ready, this is the time to buy. Amazing houses are sold for very cheap right about now. At these rates, you may never need to refinance or even have to think about mortgage modification.
Additional reading
Reuters
reuters.com/article/idUSTRE67P30X20100826
Bloomberg
bloomberg.com/news/2010-08-26/mortgage-rates-for-30-year-loans-decline-to-record-4-36-freddie-mac-says.html
