With a new year come new opportunities and if you’re thinking about buying a home this year in Sandy Springs, the opportunities will abound. We may very well look back on 2009 as the best year to buy real estate in the last 25 years. Home prices have come down and interest rates are phenomenal.
The year in review:
The 2008 mortgage -related headlines read as follows: Bank Failures; Subprime Meltdown; Financial Crisis; Government Assumes Control of Fannie Mae and Freddie Mac; Treasury to Buy Mortgage-Backed Securities; and so on.
2008 was a good year for some people. It was a terrible year for many. It doesn’t matter which side of the fence you sit, we can all agree that it is now gone.
I’ve never seen more volatility in the financial markets than in 2008. 30 year fixed home loan rates varied between a high of around 6.50% to a low of just under 5.00%. Interest rates bounced all over the place and changed by nearly .50% in a single day on several occasions.
So, where do we go from here?
What to expect:
Home loan rates are going to start 2009 at historical lows. The markets are still a mess and the volatility should continue. The $10 million dollar question of course is: Are rates going to continue to drop and how low can they go?
The experts differ on the answer so I’ll offer some advice. We are at once in a lifetime levels right now. There is a chance for rates to move either direction from here. If you are considering buying a home, you don’t want to miss this opportunity.
Many feel we will see the bottom of the housing market this year. So, low rates coupled with low home prices should make for a nice combination in 2009.
Next 7 days: Friday’s job report could help rates move lower
Next 30- 90 days: Chance for lower rates; Governmental interaction likely
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