The early spring predictions of the 7.0% rate by the end of the year looks to be distant history. Most analysts of major mortgage web sites, such as Bankrate.com feel rates will remain unchanged going into the new year. They may even lower as economic news is good, unemployment and oil prices are down, and the Fed's rate raising party seems to be over.
The Chicago Tribune this weekend reported Freddie Mac has average US rates for a 30 year fixed at 6.43% with a 0.5 point. Not bad. Bankrate.com has the same.
So buyers... get off the fence. There are people out there moving on and need to sell their place. Let us think about this. Many buyers and investors (my in-laws included) worry about investing in real estate now because the market is "soft". Geez! Of course you should invest now!
Simple question... would you have bought Enron, GE, Lucent, or any other number of stocks at the very top of the booming stock market in 1999-2000 because it was the "hot" thing and the whole country was in a frenzy and you were missing it? Or, would you have bought that new condo conversion or re-sale unit at the beginning of last spring because you had been left out of the hot condo market and finally were going to jump in? Sounds silly now, but that's exactly what people did and lost their !#$%*!
Soooo instead... buy low and sell high for a change. We have just experienced a slight glut in the condo market, a one year, full on media blitz of negative real estate news, and the average folks are psyched out! This is opportunity time.
Your low ball may be the only offer. I mean, why not write a bunch of deals on places you like and see what happends. It's just a matter of pushing for way below market from a couple years ago.