Average Americans to the Real Estate Rescue
As Congress continues to bicker how to spend trillions of our dollars we are noticing an ever-so-quiet thaw in the real estate market.
First, Staci Calvert, one of my long term staff members who is a senior real estate closer for our title company: Weston Title, came over to me and said she had never seen a 30 year fixed loan close at 4.75 percent! Well folks it happened! It was a refinance. In addition, as reported in the Wall Street Journal today and other major publications, first time homebuyers and people previously priced out of the market are coming back in to pick up bargains.
You see until now, incomes could not support the old inflated hosing prices. Now the two markets: incomes and real estate prices are converging quickly so that buyers can once again afford to buy. Add to that, the new, low interest rates and we could all be back in business.
Some commentators have added that foreclosure sales were down in January too. I hate to break the news; but, the decrease in foreclosure sales is likely due to the foreclosure moratoriums imposed by some states and banks during the Thanksgiving to New Year’s holiday season.
Thus, if the bail out really focuses on trimming foreclosures, then maybe – just maybe – we may well see some stabilization in the real estate market. Or maybe, this is just wishful thinking on a Wednesday morning.