Mortgage rates have dropped again this passed month. On top of that, these low interest rates have brought stimulation into the developer’s new housing market. Now this is great news for home buyers! Low interest rates mean lower mortgage rates for home buyers, down approximately 1.25 percentage points from last year, according to CNBC; and stimulation in the developer’s market means lower housing prices overall.
On one hand, the market has been in a slump, and it is speculated to go down even further, while on the other hand, why wait for a market you don’t know when you can rely on the one you do know? This is the big question home buyers need to be asking themselves now. The sell off in the stock market has been very gracious to Fall home buyers – More importantly, if you are already a home buyer, now is the opportunity to refinance your mortgage.
Due to the lower interest rate, mortgage applications have jumped up 14% according to CNBC. So how does this affect you as the consumer amid a slow down in the market? Well the Federal Reserve is trying its best to boost spending in the economy to prevent another economic downfall. But while rates are being cut, and the market has slowed, properties values have not dramatically shifted in value. This has caused the market to be at a standstill and caused buyers to be weary of the market, creating a challenge for buyers and sellers alike. The best thing you can do as a buyer is jump in now before the market gets hot again, as housing prices may be high now for the average buyer, but they will certainly not falter in the future. Lastly, as a seller, listing your property either at the bottom of the market value, or just slightly below the value of the market will not only attract more attention to your listing, but will also help create the potential for competition among buyers. The market is slow, and buyers need to feel an incentive, otherwise, they will pass on your listing.
For a full detail, check out CNBC’s Article.
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