What does it all mean for the Home Buyer?
by : Mari Takeshita
FED STALLS IT’S EASING AS ECONOMY SLIDES
Last year, the Federal Reserve started buying Treasury and Mortgage Backed Securities, to the tune of $85 billion per month, in an attempt to lower interest rates and spur on the economy. It has been effective. Interest rates plummeted, and home prices went up. And Buyers were back out purchasing homes.
Interest rates immediately spiked. Mortgage rates saw the greatest three day jump that had been seen in almost 20 years. As much as 1.50% on 30 year fixed mortgages.
CoreLogic Home Price Index reported that home prices grew at 12.4% year over year in August; while home appreciation climbed only 0.2% from August to September.
What does this mean to you?
It’s a good time to be purchasing a home.
Why? Because rates are still low, even though they went up a bit. We are so accustomed to a single figure rate, but anything lower than 10 is still a great rate. Rates right now are about 4.25 and holding today.
Prices have been going up, but you will find the right home in the area you wish to purchase. By working with a Realtor, you will have quick access to homes that will fit your family’s needs.
Denver is presently seeing the least amount of listings and it is difficult to compete with other buyers in the market—UNLESS YOU ARE A PREPARED BUYER.
1. Have your Realtor pre-qualify you with a good lender.
2. Make sure to have your Lender give you all loan options so you can determine which loan to use. ( if you have several options)
3. Understand the A-Z of purchasing a home.
4. Ask your Realtor or Lender to explain the down payment assistance programs available in your area that you will qualify to use.
5. Discuss your concerns and “fears” with your Realtor. Their advise is priceless.
6. Learn the market in the area you want to purchase so you are making the best offer. ( this is not like buying a car at a dealership and negotiations is a game)
7. Be prepared to make an offer when you see the right home.
Create the best opportunity for yourself and you will find the process of purchasing a home easier than you thought.
Cell – 303.941.MARI (6274)
Fax – 720.208.0215
Cherry Creek Properties, LLC