Economic Indicators Are Every Which Way But Loose in Housing Market

The Financial Times says: We must get ready for a weak-dollar world Great article – give it a read.

Fox Business News reports: Fed Officials Play Down Impact of Weak Dollar

Fox Business News also reports: Business Economists Raise 2010 Growth Outlook & New Home Sales Rise to Highest Level in More Than a Year & 30-Year Mortgage Rates Fall to Record Low

What does this mean for Danville, San Ramon, Dublin and Pleasanton California?

In case you haven’t caught the news, home loan rates have done it again, dropping to their lowest level…ever. Not only has the 30 Year Fixed rate returned to its lowest all time level, rates across the board are at their lowest levels.

Yes, that means, go ahead and choose your flavor – 30 Fixed, 15 Fixed, 5/1 ARM or 1/1 ARM – all loan types hit their lowest levels of the year! For the weekly Freddie Mac survey of all lenders, this is the first time that all have been at their lowest level.

You must understand, though, that rates are artificially low! Last November, Ben Bernanke and the Fed put into place a program to lower rates. That program though is nearing its end, as the Federal Reserve has purchased over $1 Trillion of mortgage backed securities this year and with less than 20% of allocated funds left in the program, rates are sure to increase. The only questions remaining are by how much and when.

Interest Rates Are Going to Rise – If you are thinking of buying or selling Now is the Time – Why? Because you know what the situation is today.

When interest rates rise it will totally change the affordability equation for buyers. For sellers it will mean the buyer pool we shrink and market activity will slow until consumers realize that the days of 5% mortgages are gone – for a very long time.

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Email Craig if you would like to know more about buying or selling a home or condo (925) 984-4910.