26th
Nov
2009

Hitting Rock Bottom

Posted by Admin

Mortgage rates were abysmally high during the real estate boom that was occurring over the past decade or so in America. However, they are now bottoming out, hitting their lowest point in thirty years this week. 4.78% is the rock-bottom rate that is being passed around. Of course, Realtors and speculators are taking this as good news–that the market can only go up from here, but I’m not so sure that’s true.

“In the future, we’ll all look back on these days as the best opportunity in a generation to buy homes,” said John Holmgren, spokesman for the California Association of Mortgage Brokers. “Rates are at a historical low, home prices have fallen and the federal tax credit for homebuyers has been extended — it all adds up to a home run for people who want to buy now.”

Certainly now is a great time to refinance, though, at least. And as Mr. Holmgren says, it might be a good idea to buy. But I remain unconvinced that the market could not go any lower.