What Today's Interest Rate Means To You

   

Why look for a new home now?

1. Interest rates are at historic lows.

2. Home prices are favorable.

3. More options and more choices of homes available.

Are you ready to Purchase that dream home you've always wanted? Or- are you planning to move and need to sell your home first?

The housing slump has exacted its toll on everyone from banks and Wall Street firms to builders, mortgage brokers and realtors.

Daniel Mudd, the President and CEO of Fannie Mae, the largest financer and guarantor of U.S. home loans, predicted that the housing market downturn is likely to persist into 2010.

Countrywide Financial, the largest U.S. mortgage lender, said  that foreclosures and late payments rose in December to the highest on record, sending its shares tumbling for a second day to their lowest in nearly 13 years.  Like many lenders, Countrywide has been hurt by falling home prices, rising defaults, and tighter capital markets. Countrywide Chief Executive Angelo Mozilo has said the housing slump is the worst since the Great Depression.

Chief Economist, David Rosenberg at Merrill Lynch, goes so far as to warn, "Real estate pricing in general can expect to be in the doldrums through 2012."

The number of vacant homes is expected to rise further this year because a record number of homes are entering foreclosure. And hundreds of thousands of homeowners with subprime, adjustable-rate loans will face higher monthly payments. For some, it will be the last financial straw.  Many housing market experts are forecasting 2.5 million foreclosures in 2008 up nearly 100% from 2007.

The biggest problem is the glut of homes for sale — more than 10 months' worth. And about 2 million of those homes (about 2.6%) are vacant, with banks or builders trying to get them off their hands.

So where does this leave you.?

If you are a seller, it has never been more important for you to price your home properly for the maximum amount of activity. You can survive in this market!!!

If you are a purchaser with a good credit rating, the time is right for you to invest in your primary or secondary home now.  You can benefit from lower interest rates, lower home prices; and with the help of your real estate professional, you can feel confident that you are making the right decision and paying no more than the home is worth.

Email  Marti@SteedRealEstate.com to request your free Comparative Market Analysis in Northern Dutchess and Southern Columbia Counties.