Morgage Rates Today

With all of the uncertainty today people are still reluctant to purchase real estate.  Truth be told real estate is on par with the stock market when it comes to investment risk.  With that said the real estate markets are still under value and mortgage rates remain historically low.  This means you have more buying power than just a few years ago.  The Federal Reserve has begun to reduce their purchasing on MBS’s, mortgage backed securities, and will continue to reduce their purchasing in the foreseeable future.  This is being done in hopes that Wall Street money will purchase more MBS’s.  By the way, this Wall Street money is our 401K money.  Just yesterday the Federal Reserve indicated that they would reduce their purchasing on MBS’s and the Mortgage Bond Market responded favorably.  This trend may have more to do with the instability of the stock market which is unfortunate but we are happy rates improved.  The MBS Market still remains on a roller coaster ride with rates moving up and down but the overall trend is moving up for future mortgage rates. 

Investor’s are still buying real estate as most transactions today close with all cash buyers.  This is not happening by accident.  Investor’s view the market as an incredible opportunity to invest their money.  I like to see the average person benefit so I would urge anyone that can buy for within $200 per month of what they are paying for rent to get out and look for yourself as you might be surprised at your opportunities available to you.  The tax write-off will benefit you more than $200 monthly so you will still be money ahead.  For example, my company closed a transaction for one of our clients in Feb of 2012 and surprisingly his value has risen $95,000 in just 11 months, if anyone wants details email me.  Now this will not happen for all properties but this is an example of what I am speaking about.  Contact a local Real Estate professional and find out your local real estate values.  Yes speak with family and friends but also get a professional’s opinion so you can make an informed decision on any future real estate purchase.

Stay Tuned…                  

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