that crashing sound you may have heard starting yesterday afternoon and
swelling to a crescendo this morning was the sound of the fed funds rate, ie
interest rate at which banks lend to each other bouncing off the floor! from
1% then to ’0 t0 .25%’ now. what the heck does that mean? it meant mortgage
brokers looking at conforming loans (under $625,000) now at 4.5%! and
hitting the phones, emails, texts, snailmail and yelling out the window that these
rates are the lowest since well, 2003 actually. coupled with the fact that prices
are at a similar level in a lot of places, and with decent credit you can buy a
house or condo with 3% down which certainly excited the real estate community
as they caught up with the news. though in talking to clients and buyers as i
happen to be one of the excited ones, the reaction was decidedly mixed. the
logic is hard to argue with but since when do you get logically excited eh?
buying a home is a very touch feely emotional thing and i can back that up
with 18 years of doing it both as an agent and a buyer. it’ s much easier to buy
when it’s a hot market and everyone is telling everyone how great everything
is and eveyone is making money everywhere. the problem is that’s when you
get beat up by the seller or priced out of the market. it’s cold windy logically
right times to buy when you get the deals that last a lifetime. now how do i
make that exciting i wonder?
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