This blog is for discussing issues in our complex global economy.
A chart from Carpe Diem:
The 30-year fixed mortgage rates are the lowest ever recorded. It’s a great time to refinance or buy a home.
This phenomena is simply explained by the law of supply and demand- the prices of homes are adjusting to bring the quantity supplied and quantity demanded into balance. Since the economy is doing poorly, people are buying less and demand is down- this is the housing markets way of attempting to reach equilibrium price.
would this be the time to buy or wait until next year? I keep hearing that the price on houses will continue comming down. Many people that I know are not willing to buy or refinance yet due to waiting for a better deal. Based on the comment that 65% of homeowners say that it is time to buy now, where or in what area you are talking about?
the housing markets are trying to find an equilibrium right now, by bringing their prices down. Most people right now are waiting to buy or refinance a house, because they are hoping that the prices will continue to drop if no one buys.
It is true that it is a great time to refinance because my parents just did. Overall I believe that they cut off nine years of their mortgage with little increase in payments per month. I believe that people doing stuff like this will be good for the economy because it will put more money in their pocket. By putting more money in people’s pockets they are able to spend more, which makes the economy better.
Well that is good news even though those low prices come from a terrible situation, where everyone is scared to spend money and invest. The demand is so low that prices need to be brought down in order to have a minor amount of customers in order to stay in business. Maybe it is time to invest in housing, which would help the economy thanks to some new customers’ spending.
yea its the best time buy a home.. problem is that no one can afford to buy a house. Therefore its a nice idea.. but only the rich can truely profit from this..
I work for Wells Fargo so I know what is going on with these government loans that are rolling into the banks. When it comes to buying homes, you can’t depend too much on the value of the property and what equity is there, but that doesn’t mean that houses aren’t cheap, because a lot of them are now a days. Refinancing is what people are taking advantage of right now, if they qualify at least. With rates below 5% that are fixed, it’s just unheard of, who doesn’t want this plan? Then again, because it is a government loan, the process is a little bit more tedious and detail oriented. To avoid getting in a big mess all over again, customers must meet high standards to qualify, good credit, verify good and stable income, low debt ratios, and sufficient equity in the primary property.
I would have to say, it looks like a good time to buy with interest rates so low, but good luck finding an affordable home, in a nice area of American Canyon. For some reason, ready to move in homes in AC are selling like hot cakes. I have been trying to buy for the last 5 month, loan approval in hand, and even putting in an offer the day the home is listed, seems to be too late. Someone always beats me to it. Of course you could buy something that needs about 50-100 thousand in repairs to make it even livable, but who has time for that? INVESTORS! Investors have time for that, and I am sure they are just eating up this market.
Buy Or House Now or wait for a better Deal?
Yes it may be the time to but a house now. the economy maybe bad
but there is always a balance in everything. Since the economy
is low then the house will be low becasue of low demands. There
is high supply with low demands. Should we or shoudnt we wait
longer for an even record low deal? Yes 65% of potential home
buyers are thinking it time to buy now!
Looks like a good time to buy for me. too bad no one realy has any money to buy a hosue right now,except the rich. the rich always get the good end of the deal…. 😉 I would if I could. With Mortgage rates this low its a great time to refinance a house. I wonder how much lower rates and prices will drop…
Yes this is a great time to buy. It is a little alarming though that some are rejoicing at the low cost of houses currently because it was the real estate crash that pushed us to the current economic recession. And for a good percentage of those homes that prices are so low came from foreclosed houses. Yes, buy a home, but do so with a level of awareness and respect for those that have lost theirs.
it is great that housing is cheap, but the thing that most people have commented is that, you need to have the money to buy a house, and people do not have the money since people are afraid that they might be laid off. Its no surprise that the real estate market would keep going down until the people are reassured that they wont be laid off, and to go out and begin to consume again.
Right now is a great time to buy a house. I keep telling my mom this, and i really wish she would listen! Economists can try to predict how the economy or housing market will be in months to come. However, from my perspective, i’ve learned that its really to predict how people will react in an economy like ours. I think people should try to take advantage while they can!
This is good news. The problem is people do not have the money to buy a home. With so many being out of work it is easy to see why they are not buying a home. Those who are still in a job are being cautious because they are uncertain whether or not they will have their job down the road. The only people benefitting from these low mortgages, is the super rich and China.
Wow that’s amazing. I think just maybe the most affordable time in history to buy a home. Not only is the market values for homes low but so is also the interest rates for homes. Back in the 1980’s homes were being valued at what they are today with the exception that homes in the 1980’s had 18% interest rates!! Today were looking at 4.85% interest rates which can be the difference of $1,000 dollars a month!!!!
Sounds like things have started to bottom out. With low mortgage rates, people who were in the position of losing their house because of high mortgage rates now have a chance to save it. I know i would like to get a house right now with the great rates that are being issued especially with the new tax breaks as well.
the law of supply and demand is simply at work here- the prices of homes are adjusting to bring the quantity supplied and quantity demanded into equilibrium balance. Since the economy is doing poorly, people are buying less and demand is down so that is why it is the best time to purchase a house. I know if I had the available resources I would invest in a house with hopes of an economic turnaround.
It is a good time to buy, but just like with cars who would want to buy a home right now? I think people are still cautious about real estate and the stock market. They feel insecure of whether or not they will still have their jobs or get laid off so they are hesitant about where their money goes.
It is undoubtedly one of the best times to buy a home… If you have the money. It is so difficult to get a loan to buy a home, even if you are very qualified, because banks and other loan agents are so afraid to give loans. There have been so many upside-down houses and foreclosures that you cannot blame them. Refinancing is a good idea, if you don’t mind furthering the amount of time until you own your home outright. If you can manage your payments as they are, it may be beneficial to just continue paying. A lower interest rate for more periods may still mean higher total interest value than a higher interest rate for a few periods. Consider your options.
Ya thats what i’m talkin about! I’m about to be in the buying market at the right time. This is another example of the signs that we are getting that the recession has hit the bottom. More people are going to start buying and everything is about to start to turn around.
During a recession is always seems that the rich get richer and the poor get poor which is true but unfortnate. Supply and demand is what drives the housing market and the housing market bubble bursting just opened up the flood gates to buy cheap and sell high.
My boyfriend and I have been lightly house-hunting for the past year or so around the Idaho area. The houses out there are absolutely ridiculously priced! It is so affordable compared to the Napa area. Their housing prices were low even before the economy took a hit and now they are steals! However, we still keep finding ourselves thinking, “Well, if we wait just a little longer.. prices might go down a little more.” But that’s the thing, you can’t wait forever, because before you know it, someone has snatched it up from underneath you. We also are very interested in the Washington area as well. We are extremely excited to be first time home owners!!
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