According to CNNMoney.com, the federal takeover of Freddie Mac and Fannie Mae will likely translate into lower mortgage rates and greater availability of credit according to experts. Rates could drop 1% from the stubbornly high 6.39% for a 30-year fixed rate mortgage.
Sellers, how does this impact you and why should you care?
Interest rates have a direct impact on a monthly housing payment, so any rate decrease will have a significant positive affect on what a buyer can afford – it could be the difference between buying and not buying or potentially being approved for a higher price range. Good for buyer, good for seller.
With decreased interest rates, a buyer sitting on the sidelines may take this opportunity to finally commit to buying. A “borderline” buyer may receive that little extra buying power they need to buy a home. A “wait for a sweeter deal” buyer may decide the deal is finally sweet enough for them to commit to buying.
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