Tucson AZ Home Loan Info

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First Time Home Buyers: Mortgage Rates Above 6% By Christmas

Image courtesy www.Sendoutcards.com/MikeInTucsonSomeone told me yesterday they expect that the administration will extend the $8,000. first time homebuyers tax credit into the new year.

That's an $8,000. bet I wouldn't take

Here's why:

  • Interest rates are likely to be above 6% for 30 year fixed mortgages by Christmas.

    • The liquidity crisis that many believed was in check when 30 year rates fell to as low as 4.50% in April is far from contained.  It could come back with a vengeance.

    • Major bank failures continue to lurk on the horizon.
      New York based CIT, a major lender to small and midsize businesses according to Bloomberg, is likely to declare bankruptcy on Friday, July 17th.  The Fed is betting that it won't pose "a systemic risk" to the economy if it fails.
  • Volatility in the bond market can provide opportunity for buyers who are prequalified and ready to act.

    • Today's 4 basis-point drop in the 10 year bond provided an opportunity for some borrowers to lock a better interest rate than has been available in the past three weeks.

If you're waiting to pull the trigger on a real estate purchase, it's time to act. 

 ___________________

I'm Mike in Tucson, your preferred Tucson, AZ Mortgage lender.
Mike Jones (Tucson Mortgage Company, LLC): Loan Officer in Tucson, Pima County, Arizona
Call me if I can help you with a purchase or refi mortgage;
(520) 349-9090

Image courtesy www.SendOutCards.com/MikeInTucson

Comment balloon 18 commentsMike Jones • July 16 2009 12:09AM

Comments

I wouldn't bet on that either Mike....it's a great benefit and I'm making sure all my clients understand the value!

Posted by Celeste "SALLY" Cheeseman, (RA) AHWD CRS ePRO OAHU HAWAII REAL ESTATE (Liberty Homes) over 11 years ago

Agreed... waiting could turn out to be a costly gamble.

Posted by Jesse & Kathy Clifton, Retired (Jesse Clifton & Associates, REALTORS®) over 11 years ago

Jesse,

It's a gamble that could keep some buyers out of the market period!

Sally,

Thanks for being the first to comment.  You do your buyers a great service by educating them on the risk of procrastination.

Mike in Tucson

Posted by Mike Jones, Mike Jones NMLS 223495 (SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) ) over 11 years ago

Mike,

They're talking about a rate increase here too. I hope too many 1st time buyers won't be looking in the rear-view mirror and missed the market.

Posted by Terry Chenier (Homelife Glenayre Realty) over 11 years ago

Yup. Lots of buyers staying out of the market right now. Uncharted waters ...

Posted by Susie Blackmon, Ocala, Horses, Western Wear, Horse Farms, Marketing over 11 years ago

Hi Mike

This is the time to buy.

Good luck and success.

Lou Ludwig

Posted by Lou Ludwig, Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC (Ludwig & Associates) over 11 years ago

I guess waiting for a better deal might be a bad idea.

Posted by Larry Brewer - Benchmark Realty llc (Benchmark Realty LLc) over 11 years ago

The old saying goes a bird in the hand. I wouldn't take that bet either. Im a realist and I deal in facts. Some dreamers have already lost out.

Posted by Chip Jefferson (Gibbs Realty and Auction Company) over 11 years ago

There will always be those that think they know more than the professionals.  And that's sad because it promotes a whole group of people that, because they didn't heed the information provided, will wind up playing the blame game because they didn't take advantage of this incentive.  It's human nature.  Unfortunately.

Over the last 35 years I have had mortgages that were as low as 4.675% and as high as 26.75%.  Anyone who thinks that this 'break' in rates is going to last forever is delusional.

Posted by Carol Smith (Casmi Photography) over 11 years ago

Waiting is a spell for the lovers... the dreamers... BUT not homeowners! When it comes to mortgage rates,  procrastinating until something better comes along usually means missing the boat.

Posted by Kate Kate over 11 years ago

I'm hopeful that most First Time Buyers will jump off the fence before the rates go up and up they will go for sure. Most of the people I know who haven't jump in yet tell me their fear is job security. It's kind of hard to consider buying a home while they're worried about staying employed.

Posted by Suesan Jenifer Therriault, "Inspecting every purchase as if it were my own". (JTHIS-Professional Home Inspection Team) over 11 years ago

Suesan,

As the old saying goes, "From your mouth to God's ears."

Kate,

Right on!

Carol,

I was a developer the last time first mortgage rates were at 17%.  The company went bust.

Laura,

Yes they have!

Larry,

Ya think?!  LOL

Lou,

Thanks!

Susie,

Thanks for commenting; these are uncharted waters!

Terry,

Real estate may be local, but rates are not!

Mike in Tucson

Posted by Mike Jones, Mike Jones NMLS 223495 (SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) ) over 11 years ago

I agree the rates are on the rise and prices seem to be stabilizing to going up with first time buyer credit any first time buyer should buy now.

Posted by Terry & Bonnie Westbrook, Westbrook Realty - Grand Rapids Forest Hills MI Re (Westbrook Realty Broker-Owner) over 11 years ago

I agree.  I am already seeing where some buyers missed the boat in my market area.

Posted by Donna Yates, Blue Ridge Mountains (BHGRE - Metro Brokers) over 11 years ago

Mike,

I agree nobody should be placing a bet on the tax credit being extended or improved.  They should be acting on what they know and not what they are hoping will happen.

Thank you sir for the post.

Posted by Don Rogers, Realtor, Broker, CDPE, GRI, OnullFallon MO & St Charles County MO homes (Keller Williams Realty Chesterfield) over 11 years ago

Mike- CONGRATS on the new job!  Lending in 50 is important too!  Not sure I agree on the rate thing...tho...as I think in this enviroment, it is EASY to predict they will go up...as they have nowhere else really to go..As things get WORSE, there seems to truly be only one answer!!

Thanks so much! TT you soon!

D

Posted by Darin Osenberg (Funky Quail Vintage) over 11 years ago

I agree, don't count on anything being around any longer than expected.  Take advantage now while the taking is there!

Posted by Sharon Tara, New Hampshire Home Stager (Sharon Tara Transformations) over 11 years ago

People need to take advantage of that 8k and the low interest rates while they can! I had a client lock in 5.1% last week, which really rocks!

Posted by Barbara-Jo Roberts Berberi, MA, PSA, TRC - Greater Clearwater Florida Residential Real Estate Professional, Palm Harbor, Dunedin, Clearwater, Safety Harbor (Charles Rutenberg Realty) over 11 years ago

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