Yesterday saw mortgage interest rates hit a 25 year low – for about 3 hours! As the day played out, there were a total of four major adjustments in rates according to Mike Tacconi of CMG Mortgage Services and past president of the California Association Mortgage Brokers  (CAMB).

This morning, rates had adjusted twice by 10am and we will probably end the day with at least one more. All of this in response to the Asian financial markets, the recent Fed interest rate cut, the recession worries, the job market report, and the possibility of of more legislative support for the mortgage industry.

What’s the significance of all of this for home buyers? It’s a roller coaster world out there. Home buyers in the Danville, San Ramon, Walnut Creek, Alamo, Dublin and Pleasanton areas will benefit from establishing a working relationship with a professional Realtor and Lender.

It’s a buyer’s market in the East Bay of California and all of this excitement and recession concern is helping to turn a so-so buyer’s market into a hot buyer’s market.

The key to this market for buyers and sellers is not the price of the home, but the monthly payment. Buying down the interest rate is something we are seeing more and more of. It’s often a better solution for the home buyer and the seller.

Talk it over with your lender and agent. The time to get into this buyer’s market is now – you will be reading more and more online and offline about the improvement in conditions for buyers.