April 24, 2009: A recent article in the Wall Street Journal’s real estate section reported interest rates had fallen, or stayed level this past month.
The article stated: “Rates on long-term home mortgages are lower than short-term home loans,” according to Freddie Mac’s weekly survey.
“Interest rates for one-year ARMs exceeded those for 30-year fixed-rate mortgages over the last two weeks; this is the first time this has happened since Freddie Mac began collecting data for ARMs in January 1984,” said Frank Nothaft, Freddie Mac chief economist.
The 30-year fixed-rate mortgage averaged 4.80% for the week ended Thursday, down from 4.82% last week and 6.03% a year ago.
Fifteen-year fixed-rate mortgages averaged 4.48%, unchanged from last week’s low, and down from 5.62% a year ago.
Five-year Treasury-indexed hybrid adjustable-rate mortgages averaged 4.85%, down from 4.88% last week and 5.68% a year ago. One-year Treasury-indexed ARMs averaged 4.82%, down from 4.91% last week and 5.29% a year ago.”
I remember getting my first loan for a home I purchased in Milwaukee, WI back in 1970. The rates were 8% on a 30 year fixed. I was elated! Five years later, after selling my first home and purchasing my second home in 1975, the rates were still 8%. I couldn’t believe it when rates fell to 7% for a 30 year fixed loan in 1998. That’s when I bought my third home in the beautiful Palm Springs California Desert. Today, when I see interest rates less than 5%, I pinch myself…………..surely I must be dreaming!
If there was ever an IDEAL TIME to buy a home, it’s NOW! Interest rates are at an all time low and homes have adjusted downward to VERY AFFORDABLE prices. Wow….what a combination! Now is a good time to take advantage of two new tax credits.
If you are thinking of buying, just give me a call. I’ve been selling properties in this beautiful valley for 17 years, and I promise to find you a great home at a great price with great interest rates. You just can’t do better than that!
Would you like to make a comment on this article? At the end of each of these weekly messages, there’s a place at the end of each article for you to add comments. Just Click on “No Comment,” it will open up and you can write your comments here. It’s a great place for you to “let YOUR thoughts be known on the various articles written. Be My Guest………I‘d love to hear from you! Others would too!
Brought to You By Your Favorite Realtor,
Nancy Hankin
www.PalmSpringsHomesAndEstates.com
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