Now May Be The Time To Buy A Home In West Los Angeles

Now May Be The Time To Buy A Home In West Los Angeles

I have been asked many times this month whether someone should buy a home now and take advantage of interest rates – before they go up any further – or wait for housing prices to go down further? Below, is a great article that addresses the question…

Now May Be The Time To Buy A Home

 

Mortgage Rates On 30-year Fixed Loans Soar Above 5%

One of the main reasons why its been so busy in real estate right now is that buyers are trying to lock in their mortgage rates since it has been slowly climbing and has reached above 5% on a 30 year fixed loan – the highest level in nine months. Did you know that if you had 20% down payment and wanted to keep your payments at say $2,500/month with a 4.75% interest rate, your purchasing power can get you approximately a $600,000 worth of property. If the interest rate jumps 1% higher to 5.75% and keeping your payments the same at $2,500/month, your purchasing power drops to approximately$535,000. Thats almost 11% less purchasing price that you can get. Definitely a great time to Buy.

Mortgage rates on 30-year fixed loans soar above 5%

 

Lower Real Estate Interest Rates Will Lead To Faster Economic Recovery

Federal Reserve Chairman Ben Bernanke says that if business and consumer confidence improves and interest rates stay low, it will most likely lead to a faster economic recovery. Interested in hearing your opinions…

Economy still in a deep hole, Bernanke says.