Interest rates have gone up for three weeks in a row now for the “normal” (the 30 year fixed rate) home loan. This is not terrible news however. This three week raise is from record (since 1971) lows of 4.19% on Freddie Mac
The average rate for a 15 year fixed loan dropped again, down to 3.66%. Rates have been historically low since April, making investors nervous. Since gains are directly linked to housing interest rates, investment returns have been low.
While this may sound greatfor the housing industry, we believe it has shortcomings. Recent history has shown us that interest rates alone aren’t enough to rebound the housing industry. And lack of confidence by investors slows down the economic recovery.
Does this mean it’s too late to buy? NO! Interest rates are still fantastic. Prices are below the sustainable market price. Money is available. Banks are still unloading their foreclosure inventory. If you are a renter or a first time buyer this may be the best opportunity you will ever see to own your very own piece of the American Dream!
You can buy for less than you can rent! It’s true. If you would like to see how the two compare check our calculators out. Or just email or call us (530 315-2808) for the most accurate and personalized information.