There’s never been a better time.
Greece started to see the cracks of its economic Parthenon when it succumbed to financial ruins and needed the 10 billion euro bailout from neighboring European countries and the International Monetary Fund. It’s a global tragedy waiting to happen and we’re bracing ourselves once the crisis is defused. If the country won’t be saved, the entire continent and North America must be ready for a capital flight that will lead to a fall in lending and ultimately businesses will be pushed to the gutter.
But not everything’s for the worse. CNBC eports a very promising advice in its interview with Moody’s chief economist Mark Zandi. He stresses, “It’s the best time in our generation to buy. It may be the best time in any generation. Mortgage rates are so low and with homes prices down and lots of inventory, you couldn’t pick a better time to buy or re-finance.”
The report has the numbers to boast of: “The current average rate for a 30 year fixed loan is 4.87 percent, according to Bankrate.com. That’s the lowest rate for the 30 years since Bankrate started keeping track 25 years ago. Even jumbo loan rates-loans for more than $417,000-have fallen. The 30-year fixed jumbo loan is at an average rate of 4.5 percent, down from nearly 6 percent at this time last year.”
This is supported by Bankrate.com’s chief economist, Greg McBride: “That’s particularly true for people who can take advantage of the government’s Home Affordability Refinance Program (HARP)-which allows home owners to refinance into low mortgage interest rates even if they’re property value has gone down.”
This news is most likely to encourage more buyers following a surge in home sales brought about by the tax credit offered to first time homebuyers. The National Association of Realtors’ chief economist Lawrence Yun states, “The upswing in April existing-home sales was expected because of the tax credit inducement, and no doubt there will be some temporary fallback in the months immediately after it expires, but other factors also are supporting the market. For people who were on the sidelines, there’s been a return of buyer confidence with stabilizing home prices, an improving economy and mortgage interest rates that remain historically low.”
I say, buyers who are still undecided whether to pursue buying or not must take heed from these industry analysts.
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