Our guest blogger from the Miami Area, Justin Miller’s information is really timely, as I have received loads of emails about just this question! I would love to see people be able to purchase or refi real estate at 4.5%, but can they??
There were suggestions last week that the federal government might drive rates down to 4.5%. No one knows who would get these low rates except that it would be for home purchases only. This is a story that should have never been leaked and I truly believe that it will not take place. The news has died down and artificially decreasing rates would only encourage risk taking. Rates have dropped to the low 5 percents in the past 2 weeks due to the Fed buying up $600 billion in mortgage-backed assets and the only increase in my business has been from refinances, not purchases. This is not the solution to our problem. The low 5 percent range isn’t spurring buying and neither will 4.5%.   If you are borrowing money anywhere in the 5 percent range, that to me is free money. What we need to do is change the underwriting guidelines so banks begin lending more money and help existing borrowers.
Thanks
Justin Miller
Southeast Regional Manager
Resource Mortgage Group formerly
JB Mortgage & Financial Services LLC
954-227-0211 Office
754-214-7449 Cell
954-227-0214 Fax
499 NW 70th Avenue
Suite 105
Plantation, FL 33317
www.resourcemortgage1.com
The bottom line is that, once everyone becomes more optimistic, you won't be able to get low offers accepted and to get sellers to contribute towards closings costs. We don't know when the bottom will come but when it does it may be too late to get a great deal on a purchase. Here is a great article that talks about buying now: CLICK HERE TO READ ARTICLE
Please feel free to EMAIL ME with any questions or comments.