Long term interest rates will stabilize around where they are now, but this cut will also affect inflation, so don’t expect 30 year rates to come down significantly(they actually just worsened by .25 basis points for the moment). Helocâ€™s will come down, and existing adjustable loans wonâ€™t reset quite so high. Combine that with Stimulus Package being debated in Congress this week, and the dramatic change in the volume and quality of phone calls we’re receiving from buyers who are ABLE to buy, and weâ€™re probably starting to build a bottom.
Most of the buyers Iâ€™m talking to now are trying to decide whether they are WILLING to buy now, and since Jack’s written 2 offers this week, and gotten an offer on a listing, (all of which are still being negotiated), we’re definitely seeing a shift.
Todayâ€™s talking heads on CNBC (video worth watching) and CNN are suggesting that weâ€™ve managed to stave off a recession, and that weâ€™re probably at the bottom of the interest rate cycle. That should signal the bottom of the housing cycle. We’ve also seen a huge surge in refinance loan applications, as the more savvy home owners are realizing locking in a 30 year fixed rate now will likely be their best time to do so. If you’re one of those people, give me a call at 702-686-2036 & we’ll help you today.