The Federal Reserve has decided to keep the interest rates low for up to two more years! That will take us through 2013! All this according to the minutes from their August 9th meeting. The link to the full article is attached.
Consumer confidence is down for August however, in the third quarter of the year growth picked up and jobs were created, but PEOPLE! Mortgage interest rates are between 3-4% on a 30 year fixed rate mortgage. Take note of the following example:
Purchase price $200,000 heated square footage 2,200
Loan amount $200,000
Interest rate 3.75% = $1,134.56 monthly payment
Interest rate 6.00% = $1,407.43 monthly payment
APR would factor in closing costs for the above interest rates. Closing costs are not considered here just for the sake of determining monthly payment amount.
Renting at $1250-1300 per month you home will between 1800-1950 square feet.
Yes consumer spending on high ticket, retail items is down in part due to the uncertainty of federal budget, spending cuts and the volatility of the stock market. Historically, the real estate market has been the driving force to keep the economy moving forward and has lead the economy out of recession.
Home buying continues. First time homebuying is at the most affordable level we may have seen in our lifetimes. What is keeping the consumer from taking the leap to purchase what should be a long term investment? Are you on the fence as to whether to buy, sell or rent? What is your objection to making the commitment? I want your comments..........What can I do to assist you with alleviating your reservations.
Consumer confidence is down for August however, in the third quarter of the year growth picked up and jobs were created, but PEOPLE! Mortgage interest rates are between 3-4% on a 30 year fixed rate mortgage. Take note of the following example:
Purchase price $200,000 heated square footage 2,200
Loan amount $200,000
Interest rate 3.75% = $1,134.56 monthly payment
Interest rate 6.00% = $1,407.43 monthly payment
APR would factor in closing costs for the above interest rates. Closing costs are not considered here just for the sake of determining monthly payment amount.
Renting at $1250-1300 per month you home will between 1800-1950 square feet.
Yes consumer spending on high ticket, retail items is down in part due to the uncertainty of federal budget, spending cuts and the volatility of the stock market. Historically, the real estate market has been the driving force to keep the economy moving forward and has lead the economy out of recession.
Home buying continues. First time homebuying is at the most affordable level we may have seen in our lifetimes. What is keeping the consumer from taking the leap to purchase what should be a long term investment? Are you on the fence as to whether to buy, sell or rent? What is your objection to making the commitment? I want your comments..........What can I do to assist you with alleviating your reservations.
