Amazing interest rates keep falling….August saw more declines in 30 year fixed rate home loans…now below 4.5% ! ! ! (Anyone remember 16% rates in 1980?). The Federal Reserve has indicated that they will keep rates low until the economy perks up.
Is it time to re-finance?….If your current rate is at or above 5%, you should seriously consider re-financing. You can get a no-cost refinance at about 4.5 to 4.75% right now. We can refer you to someone, or just contact your current lender.
THE SKY IS FALLING (or not)….Headlines about the big slowdown in home sales sound like the sky is falling. HOLD ON A MINUTE. They are reporting closed sales, so back up 60 days and we see the expiration of the $8000 tax credit. Buyers swarmed to buy in March and April (closing in May and June). Of course sales slowed down after the credit expired. In fact, with the fall seasonal slowdown, we may not see the higher levels again until next year.
Speaking of Fall….Expect the normal slowdown. Housing inventory in OC is now nearly 12,000. At the current rate of sales, we have nearly 4 months supply. Five months supply is considered to be in balance. So, the OC still has a relatively healthy housing market overall. However, some areas and some price ranges are still lagging. For current information on your area, just give me a call.
New home developments are back….Remember when new home sales were “robust”?. Well, builders are re-entering the market cautiously. If you are interested in a new home, we can help. We need to accompany you on your first visit. You have my number.
Visit my Website….To see homes for sale, go to www.smithteam.com and enter your search criteria. Have fun, and don’t forget to call or e-mail me with any questions or to see any properties. I can also provide a market analysis of your property. No charge, of course.
Until next time,