Exciting Interest Rates!

Interest rates are DROPPING like a rock. One day last week rates went to 5.1% on 30 year fixed rate mortgages. This low rate only held for 4 hours, but still, rates are dropping like a rock. So how do you know when to fix your rate? When will they go up? If you fix a rate are you "stuck" with it?

It can be quite a job of speculation to decide when you should fix your rate. News of the feds dropping the wholesale rate makes everyone believe the home mortgage rate will drop too. This CAN be true, but not allways. The fed rates drop as a way to stimulate the economy. The mortage rate is low due to the slow economy. So, at some point the stimulation of the economy will cause a RISE in rates instead of a drop. That is where speculation comes in!

If you fix a rate, you are not STUCK with it untill after you close on the loan. You may have to pay a penalty ($300) to get out of the loan, but you are not bound to it until you sign at closing. Some loans have provisions to fix your rate while you are shopping for a home. If the rates drop prior to you finding a home and closing on it you have a one time ability to reset the loan rate at the lower rate.

Hmmmmmm......all this talk of rates makes me want to move or refinance.......

The Real Estate GAME?

I woke up this morning with a phrase running through my head. "Buying a home is not a GAME". Often I hear other Realtors refer to their job as a "game". I can think of nothing less "game" like than buying or selling a home. It is listed as one of life's biggest stresses. To have a realtor who thinks it is some kind of a "game" is a little disturbing. I can only surmise that people in the industry who feel this way are on some sort of power trip. There is a ton of negotiation and strategy involved in buying a home. Buyers and Sellers both rely heavily on the advice of their realtor's . I view it as a huge responsibility. Some view it as a game.....

New Year, New Attitude

I hope all of my readers have had a wonderful holiday. The Thompson holiday was a busy one with celebrations and a busy work and teaching schedule. The new year brings me many resolutions. In fact, I have resolved to be a daily blogger in 2008! So check back regularly for interesting information on Western Washington and the real estate market. Nation wide it looks like real estate markets are beginning to steady. It seems (hopefully) the worst of the credit crisis is behind us and we can look forward to a year of steady or growing home prices. On a local front the outlook is even better. Buyers who were holding back on entering the market are beginning their search. Hopefully home owners thinking about a change will go ahead and list their properties now that the holidays are past and help out our low inventory! There are still "bargains" coming on the market every week for the savvy shopper. I have been seeing more sales pending at close to asking price and I haven't seen any low ball sales in a few weeks. This is good news for the sellers and a message to the reluctant buyers that now is time to leap in to the market.