How Two Fed Rate Cuts Impact Your Home Buying Power
January 31st, 2008 Categories: Real Estate Market Trends, Real Estate Tips
Last week the Federal Reserve cut short term rates by 75 basis points. This week they cut another 50 points. What does this mean to home buyers and sellers?
It means you have more buying power than ever before. Mortgage interest rates are already very low. They have been that way for quite a while. 30 year rates under 6% are common now. Many of the riskier products have gone away, but that is probably a good thing.
Combine the low mortgage rates with a larger than usual inventory of homes and life is good for anyone wanting to buy a home in the Raleigh area. Prices have not dropped dramatically like they have in many other parts of the country. But prices never ran up to ridiculous levels either. We never had anything to correct in the Raleigh real estate market.
My wife and I are going looking at homes this weekend. Hey, when the Realtor recognizes it’s a good time to buy, that probably means something. If you need to move, do it. We need to move and we are very confident we will be happy with our decision.
We feel completely comfortable that we will be able to find the perfect home from the larger than usual inventory that is available right now. And we are also confident that our interest rate will be very low, which of course will help us afford more home than we could otherwise.
Want to get started pursuing your dream home in one of the best markets for buyers that we have seen in quite a while? Call me at 919–602–7000 or send me an email and we can talk about how to help you succeed too!
