Lani Rosales | August 19, 2011
Low, low, low
According to the National Association of Realtors, the 3.5% decline in existing home sales is due in large part to contract cancellations from declined mortgage applications or because of appraised values coming in below the negotiated price, halting the contract.
The bright spot, however, in housing is that despite cancellations and difficult lending, mortgage rates have hit their lowest level in over 50 years.
Freddie Mac’s primary mortgage market survey this week shows 30-year fixed rate mortgages averaging 4.15%, 15-year fixed rate mortgages average 3.36%, 5/1-year adjustable rate mortgages average 3.08% and one-year adjustable rate mortgages average 2.86%.
The economy isn’t just circling the drain, it’s stuck in the strainer. But don’t fret. It’s the perfect time to sign a 30 year contract to borrow 3 or 4 times your annual salary just so you can paint your walls any color you want (not available in some HOAs).
Home sales numbers are dropping because of cancellations. Homes are appraising lower than expected and loans are much more difficult to qualify for. That means it’s a perfect time to buy! You can get more house for less money, and you’ll have fewer people to compete against because everyone’s credit is shot.
Except yours. Your credit is Special.
This is an open thread. Let us know about the Special Houses you visited today.