Financing in Denver>Question Details

Susan Alvarez, Real Estate Pro in Longmont, CO

Is there a magic number? What mortgage rate would move this market?

Asked by Susan Alvarez, Longmont, CO Sun May 29, 2011

Rates are in the 4.6 percent range. If price and rates are not moving inventory. What will make homes too irresistible?

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Hello, with several years of experience I can tell you that the rates have been low for quite some time now. What makes a difference in the economy are jobs and consumer confidence. Right now, people who are losing their jobs are or think they may lose it are holding off until they feel more secure financially. Also, most people who are working are holding on to their money and saving more.

But as a top salesperson in my office for four years straight, I continue to sell many homes to those people who want to take advantage of the real estate market. You have to find those people that want that American dream and are tired of renting and know they can only get a house now while prices and rates are both down.

i hope my answer gave you a clearer picture.
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1 vote Thank Flag Link Sat Aug 27, 2011
There always a trick involved with magic......AND, there are no tricks with real estate. It's much more complicated than assigning magic numbers to solve the RE market woes.

Government incentives, historically low interest rates, "fire sale" prices......isn't it time to see what the market can accomplish on its own?
4 votes Thank Flag Link Sun May 29, 2011
Mortgage rates are at a historical low. What we have is excess and distressed inventory and a biased press screaming that prices are going to go even lower. The only way to combat that perception is to remove the 'shadow' inventory and the way to do that is for the Attorneys General and our elected officials to force the banks to modify mortgages, whether through incentives or as punishment for their bad actions, wherever possible. It will not be possible to modify all delinquent mortgages, however, at the moment banks are denying every loan modification possible because the government is actually PAYING THE BANKS TO FORECLOSE ON CITIZENS! It is being done through the FDIC as part of the bank bailout program and it needs to end, both for the sake of distressed homeowners, the general real estate market, and the economy in general.
3 votes Thank Flag Link Sun May 29, 2011
The housing market's condition has nothing to do with interest rates. Nothing at all.

It has to do with consumer confidence. And it has to do with the tightened criteria that are preventing even reasonably well-qualified people from getting loans.

Look: There are ways that investors can offer 0% financing. That's simple to do. I won't go into the details--nothing illegal or immoral though. It's just that you find your profit in other ways. Heck, seller financing could work the same way. If someone bought, say, 20 years ago for $200,000 and the house is now worth $450,000, you could do owner financing at 0% and it'd work OK for all parties. What would the owner get if he put that money into a bank paying 1%? A few thousand dollars? Maybe $4,000-$5,000? But if he put it on the market conventionally at $460,000, he'd probably be happy to get an offer for $445,000. Then he'd probably be asked to pay some closing costs--another $6,000-$8,000 or so. And we're not even talking about commissions here. But he's probably willing to accept a $10,000 discount (a negotiated price and some closing costs) just to sell the house. Why, that's probably double what a 0% interest loan would cost him, versus putting his cash into the bank at 1%.

So why isn't every homeowner in America (who can afford to do so) offering 0% financing? Because that's not the main problem. OK: With seller financing there may not be quite as much difficulty "qualifying." But you've still got that big issue with consumer confidence. People aren't buying because . . . they aren't buying. They're afraid to buy.

No mortgage rate is going to move this market. Restoration of consumer confidence and the ability of those with reasonable credit to get a loan is a major part of the solution.
2 votes Thank Flag Link Fri Oct 7, 2011
Don Tepper, Real Estate Pro in Burke, VA
Hello Guy Ghanem,
I have seen that statement that every new home creates 3 new jobs.

I worked for contractors for a number of years and sold homes. When the economy fell into recession, my job disappeared. I live in a very prosperous part of the country and that seems improbable that it could occur. But it did. I worked for Engle Homes, a builder who brought excellent craftsmanship to construction along with creating great communities populated with people who could afford those homes. I loved my job. I enjoyed working with Engle's people and many of them would like to be working for the next Engle. It won't happen for a few years yet.

A friend was fond of saying: You pay your dues and take your chances. When it comes down to it, we fight the good fight. At the end of the day, things take care of themselves.

The economy was surging as late as May for parts of Colorado. It was like everyone was on the launchpad waiting for the countdown to run out. There was no launch. Things seem to be just moving along, not dropping and not going up. Blame the constant parade of worrisome headlines. Don't shoot the messenger. We need to do some more fixing before the economy reclaims its pace. We can do things like modify mortgages and help consumer confidence. But, we also seem to be in serious disagreement about how to go about it. To my mind, I think we need more willingness to compromise and get the job done.

Until the markets and Washington are seen as acting rationally, we will be stuck in idle. We're ready to go. But no one else is.

Thanks for your comment, Guy. Hope you have a good year.
2 votes Thank Flag Link Fri Oct 7, 2011
it is NOT the rate, it is the fact banks are not approving mortgages to people who should be quailfied as they have good credit, a savings and low debt. But the banks find a reason to deny putting a huge block in sales.
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2 votes Thank Flag Link Wed Sep 28, 2011
If Congress gets bogged down in raising the debt limit, watch interest rates skyrocket. 7% will bring all the money back to real estate that is sitting in 1% money market accounts

DAVID COOPER Foreclosure Specialist with 35 Years Experience Buying Below Market. For a Free List of Bargain Homes, see website or Call +1-7024997037
2 votes Thank Flag Link Sun Jun 19, 2011
In Tucson,AZ, we have seen or markt start to turn. It has been a combination of Low rates as well as low prices. We are trying to show our clients that the Cost vs Price is a serious converstion to have and if rates were to go up by 1% prices would have to fall 10% to make it a push. It takes both to push a market as the Tucson Real Estate Market has been pushed.

Jack Murray
Long Realty -Tucson, AZ
2 votes Thank Flag Link Sun Jun 19, 2011
Rates dipped to just a hair under 4 percent this year after fears last winter that they were going higher. Crazy things happened. Home resales slumped some more. Inventories declined. Prices moved lower.

A few months ago, it looked like the U.S. was flirting with disaster. There was a budget stalemate, a drop in the credit rating for the U.S. If that wasn't enough, Europe had to get into the game.

Just this morning in Europe, the nations came to an agreement. They're letting Greece off the hook for half of what it owes. Greece won't be insolvent - not for a while.

Sorry about the long narrative. Here is the punchline: And the economy grew close to 3 percent.

We can get too focused on economic data. While the world was going crazy, consumers were out there consuming. The economy still has problems. But, what are people with a need for a home going to do? Wait for rates to start higher? They might.

You're right. There is no magic number. Or is there? Four percent seems magic to me because I wouldn't mind paying that small amount on my mortgage. Four percent means someone who was paying 5 percent is saving money every month. If they're frugal, it doesn't all go to frivolous things. But, families can go out to dinner a few more times without thinking whether they should. Junior can get that baseball mitt. Daughter can have an iPhone. That seems magic to me. What it means is all this great stuff that I mentioned at the top starts to happen.

Have a great rest of your week, everyone!…
1 vote Thank Flag Link Wed Oct 26, 2011
At this point, it's not about rates, it's about jobs and market certainty.

Rational speculators are in no special hurry until prices are likelier to start rising faster than rates. For developers and landlords, buying RE right now is like buying a computer-- there is always going to be a cheaper and better one tomorrow, so why rush into anything unless you need a 1031 exchange.

For actual flesh-and-blood home-buyers, not many of them exist right now. Home-buyers are either first-timers, or people who are trading old for new.

First-timers means someone with savings and job security, which usually means someone who has been well-employed for several years running but who hasn't ought a house yet, or who recently got a decent raise or first career. Not many of those people around these days. Existing homeowners can't buy until they can sell, and there is still a surplus of inventory keeping prices down, so nobody with a home and positive equity wants to take a loss, and those with negative equity can't trade up even if they wanted to.

No matter how low rates/prices get, you still need some combination of cash/credit/income/equity to buy RE. Usually 3 out of 4, or a lot of 2 out of 4. Those are all in short supply these days, and those who have them are mostly savvy investors who can drive hard bargains and are in no special rush, since they know this is not a one-day sale.

There is also a certain fear factor, but I think that's mostly over-rated. Market sentiment always tends to lag market performance, both in upswings and downswings, but money ultimately matters more than feelings do. The plain reality is more homes for sale than people who are capable of making six-figure purchases right now, and until that changes, it's like offering the Mona Lisa half-off-- you and I still can't afford to buy it, so what does it matter?
1 vote Thank Flag Link Sun Oct 23, 2011
3.75 and below owner occupant and under 5% investment rates convinced me to purchase two homes recently. I'm not coming across too many buyers that are having a hard time qualifying - just a more stringent process. Even if prices haven't quite hit rock bottom, if rates to up a %, you've lost anyway. For those buyers that are not staying put for several years, it's not time to buy unless they want to keep the home for investment purposes down the line. if you can't afford it, it's never a good time.
1 vote Thank Flag Link Sun Oct 23, 2011
Interest rate are only a part of the issue. While higher interet rate would move some of the Buyers off the fence, there are many others that are frozen in place by the overall economy, the political in-fighting and the instability it brings. Oh and there's the small issue of jobs, jobs, jobs...
1 vote Thank Flag Link Fri Oct 21, 2011
I think rates going to 5.5% would get many people off the fence. Piece of me wishes rates would bust over 5 and then buyers would get paranoid about rate direction and get a sense of urgency. Low rates aint working, but the fear of increasing rates just might, IMHO...
1 vote Thank Flag Link Fri Oct 21, 2011
I like these thoughtful responses. Jim Paulson describes what is happening in the Boulder County area, though Longmont still has good amount of inventory. I think it is true that sellers are content to wait for a return of higher prices.

Consumer confidence is showing up here and there. If you're watching the national scene or the stock market, confidence seems to ebb and flow with each new day. The last two weeks were strong. But this week ... Home builder confidence was up. The stock market dipped Monday. Luxury homes had a breakout month in September. Stay tuned. It's getting interesting.
1 vote Thank Flag Link Tue Oct 18, 2011
What buyers need to understand is the psychology of the sellers. Buyer's can negotiate stronger when the market is still uneasy. When the market starts to increase, sellers will pull back and wait for prices to increase further, reducing inventory and driving prices even higher.
1 vote Thank Flag Link Sun Oct 9, 2011
Hi Suz. There never was a magic number and obviously, just about all of us know rates are at historic low levels. If price and rates are of little help, we can look at every contributing factor like house condition, specific location, renovated or not, schools, etc.

I think the number one problem is consumer confidence but that is a broad concept. I think most customers have that nagging feeling that their jobs may not be as secure as they once thought and that would certainly cause people to hold back from making a large purchase. I don't know any one who wants to court a forclosure.

Our business is esentially tied to the economy. Buyers need to be able to project some years down the road with their finances and hope they can pay their obligations. There is no easy answer and we as sleaspeople in a particular profession have to project a level of confidence ourself toward our sellers and buyers. For those that can, now is a great time to buy.
1 vote Thank Flag Link Sun Oct 9, 2011
Well said, Don Tepper.

Thanks for that informative discussion of owner financing. Makes perfect sense in this market. I haven't had any sellers do owner financing. As you have mapped it out, I can see people bypassing the banks. I'm wondering how widespread that is.

We are accustomed to thinking that lower rates help enlarge the pool of potential buyers. I agree with Sunnyview. At these low levels, rates don't seem to move the needle at all.

Thanks, Don!
1 vote Thank Flag Link Fri Oct 7, 2011
I'm not sure that moving the market forward is about rate anymore. Rates are so low for a 30 year fixed under 4% that I think that it is about something else. Many who want to buy right now cannot because they are shut out of the market due to a past foreclosure or short sale or their job situation is unstable.

Better employment and time alone should help the market a lot. People with jobs are more likely to buy even if rates move higher eventually. Right now the job insecurity and credit devastation is making the recovery slow. Keeping rates low does help the market hold ground, but is not enough to move the market alone.
1 vote Thank Flag Link Fri Oct 7, 2011
If Banks don't lend , the rate factor is not even matter. We are doing a refi of an investment home and it has been unbelievable frustration with Underwriter. Considering we are OVER qualified in every area for the "micro" loan, even to the point that we have to threaten to file a complaint with their CEO of their inefficiency.
1 vote Thank Flag Link Fri Oct 7, 2011
I don't believe it's the interest rates. To me, rates are never the selling point, but an added bonus. People need to also stop believing "all the hype" about waiting to buy because they read somewhere by someone who has a computer and the ability to press the alphabet keys and type their opinion on a post/blog/article regarding the market dropping another 30% so don't buy just yet... If we all could "predict" anything the market does, everyone would be RICH!!! The internet is an amazing tool, but it also gives any tool the ability to voice their opinion (as I'm doing now! Disclaimer: this is purely my opinion!) and unfortunately, there are people out there who will believe everything they read without asking why or how.

How many of you have seen an article on Monday that says breaking news: foreclosure filings are down!!! and then on Wednesday you see an article that says breaking news: foreclosure filings are up!!! My point is, there is information coming at us from everywhere and by every news organization, blog, website... As agents, buyers, sellers and consumers, we all need to take a step back and reassess all this information and apply what we think is relevant to our business and "local" market and economy.

I feel that most consumers including myself believe that there is just too much "uncertainty" right now. I believe that one of the key factors driving it is our gov't. If Capitol Hill would actually pay attention to its citizens and stop trying to prove that "mine is bigger than yours" to the opposing side, we might actually start to see some "certainty" and consumers will start believing again. This is the time to come together. (and no, I'm not saying we should depend on our gov't for handouts. I'm saying our elected leaders need to lead!!!)

Have you guys seen the commercial that talks about how every new home built creates 3 jobs? How can you create 3 jobs building a house, when the consumer doesn't have a job to buy the new home in the first place or is too afraid that on any given day they can be laid off?

I love your question, it's such a deep issue and one that can be seen and debated from so many different points of view.

Just my 2 cents which nowadays worth less than1!
1 vote Thank Flag Link Fri Oct 7, 2011
Reinforcing what Scott Godzyk posted: There is no rush to take advantage of these rates right now. Most of the activity in mortgage applications is refi and the number of apps is dropping.

Check out this story:…
1 vote Thank Flag Link Wed Oct 5, 2011
Great question BoulderSuZ!! I'm not sure the magic number on rates would help however I do feel like if the magic number on "credit scores" were a little more flexible we would have more buyers.

I have a who crop of buyers who are all diligently working on credit repair right now.

Brooke Hengst
REALTOR,CDPE The Elite Group
Your Castle Real Estate
(720) 988-5952
Web Reference:
1 vote Thank Flag Link Wed Sep 28, 2011
What will make homes too irresistible?
Low-low rates like we are seeing now will actually hamper our recovery. When the economy heats up (gradually) interest rates will increase, putting downward pressure on home prices again (as a factor of affordability). When the majority of 'pent up demand buyers' can buy a home for the same or less than renting, we will be at the bottom of the market. Hold onto your hat when that happens because we won't be able to keep up with all the new business!!!
1 vote Thank Flag Link Tue Sep 27, 2011
Hello Joe, Cindy and others,
I'm wondering if 30-year fixed rates could drop below 4. Check out:…

Your comments are well taken. Confidence is key. When the economy starts moving again, these rates will be a distant memory - but still good. Anything under 7 percent is a good rate. As Ron Rovtar notes, people who feel good about their local economy are inclined to buy. I'm willing to bet those who observed that prices are slipping in their areas are going to be looking at little improvement for the next two years.

If buyers are holding off waiting for prices to drop still further, they might have luck in a few markets. Builder magazine notes that pending sales are up in the South and West. Existing home sales were up, too - though were not as strong.

A good rate by itself is certainly not the answer. At these levels, shaving fractions off that rate will make a difference. In these penny pinching times, that's huge!

of Longmont, CO
720 810 0683
1 vote Thank Flag Link Fri Sep 9, 2011
Wow, Great question! Interest rates are low, yet many buyers are sitting on the fence. It's more a matter of perception in my opinion. With news organizations stating how terrible the market is, the white house commenting that it will be 18-24 months before housing improves, when agents each and every day are telling clients houses are overpriced and to bring in lower offers...I think it will take more than interest rates to get the housing market moving. Those in the profession need to inform the public that inventory is low, prices are the best they've been in 10 years (at least in our MN market) and interest rates are incredible...we need to stress the positive and not the doom and gloom of thinking it's still going to get worse so wait it out....comments?
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1 vote Thank Flag Link Tue Aug 30, 2011
Hi BoulderSuZ:

Since you asked this question back in May mortgage rates have dropped again and the market has indeed improved some. But I'm not convinced that interest rates had all that much to do with the improvement, though some evidence may suggest exactly this. It seems to me that sales in Boulder and Broomfield counties have mostly improved during periods when buyers have felt more comfortable about the future from an economic point of view. Right now, the comfort level seems to have dropped a bit. However, even as people seem a little more reluctant to buy, they are still moving forward with purchases. This may mean that the interest rates have had more of an impact than I suppose or that the psychological side of the recovery is still relatively strong even if the economic numbers (growth, unemployment, income) being reported by the media are less encouraging than we had hoped.

In June, we started beating 2010 monthly sales figures (an a year-over-year basis) in the Boulder/Broomfield county area. The trend continued in July and preliminary figures for August indicate strength again. So, at least locally, something is happening out there and it is not all bad. I guess we will have to wait and see which factor (interest rates or comfort level) is the primary driver.

Kind regards,
Ron Rovtar
Prudential Real Estate of the Rockies
Days: 303.981.1617
Evenings: 303.473.1926
1 vote Thank Flag Link Tue Aug 30, 2011
Rates don't matter at the moment because people are too afraid of falling home values. Rates could be 3% and it wouldn't matter. The horror stories of what's happened to people who have had to Foreclose and Short Sale is too fresh in everyone's mind. What we need is the Gov't to come in and guarantee that homes won't go down in value and if they do, the Gov't will cover it so there won't need to be a short sale or foreclosure. THAT would move the meter big time. Check out this video:
1 vote Thank Flag Link Sat Aug 27, 2011
Hello Jack,
My husband and I paid 12 percent interest on the first home we purchased. The belief was that home prices would continue upward, so we felt compelled to act before we couldn't afford to buy. We have a stagnant situation these days. Buyers don't feel any pressure to buy.

You are indeed correct about confidence. It seems to have evaporated. But there is a point at which people come back into the stock market. Is there a point people reach in their minds that things can't get worse?

I've been sharing this link here on Trulia because I think news will get around that there won't be a massive inventory of homes that will hit the market - at least not from Fannie Mae, Freddie Mac and HUD.

The article appeared in The Street.
A Huge Housing Bargain -- but Not for You…

The thrust of the story is about the big give-away. But the effect will be to create rental opportunities and remove these homes for a while from available real estate.

Thanks for your comment.

1 vote Thank Flag Link Thu Aug 25, 2011
Rates are not the issue. A lot of us sold homes when the rates hit 18% back in the 1980s. Historically, the best real estate markets are when rates are around 7%. The issue today is confidence. Most people are worried...will they have a job tomorrow? That is the number one issue real estate is suffering; that and Congressional meddling into rules and regulations to "punish" the industry for the recent fiasco, even though Congress are the ones that missed the warning signs.

Jack Gillis, M.B.A., J.D.
Jack Gillis Realty Advisors
Nathan Grace Real Estate, Broker
5619 Dyer Street | Suite 100
Dallas, TX 75206
Cell: 214.718.4910
1 vote Thank Flag Link Thu Aug 11, 2011
Hi BoulderSuZ:

I just checked Yahoo. It has today's rate for a 30-year conventional at 4.326. Talk about cheap money! This sounds "irresistible" to me, but that fact that the rate is falling again (leaving buyers to wonder if they will get a better rate tomorrow) along with the fact that inventory here in Boulder County is depleted may keep still some people on the sidelines.

Ron Rovtar
1 vote Thank Flag Link Thu Aug 11, 2011
I think the "mixed signals," SuZ, is merely an attempt to shakedown NAR and its members for more campaign money.

Landlords can deduct their mortgage interest, so the idea that mortgage interest can be deducted by landlords but not by owners really isn't going to fly.

SuZ, you start and continue great discussions!

-- mc
1 vote Thank Flag Link Sun Jun 19, 2011

It is perplexing at one moment and not surprising another that people are not do everything they can to get a mortgage. The middle class has counted on housing as a means of wealth building for so many years, yet our government talks of removing the tax deduction.

This is not the time for mixed signals from Washington.

The middle class will figure it out.

The question is whether it will do that before rates move higher.

I am going to pull for the average consumer. I think a rate under 7 percent is marvelous. Make a great investment and live in it - what can be better than that?

Thanks, as always, for sharing your thoughts, Mack.

1 vote Thank Flag Link Sun Jun 19, 2011
Great responses! I do appreciate that people are struggling to qualify for loans. Thanks for your comment on this point, Jason.

Mack makes a good point, too. $70 difference on a monthly payment is nothing to write home about. But, we should look at it as a savings of $4,200 over five years of the loan and $25,200 over the life of the loan. People are probably living in their homes more than five years these days, so if we are looking for solutions for our clients, we should be trumpeting information like this. A $70 difference is huge, Mack!

And Marianne points are good, too. Jobs are going to weigh heavily on people's minds for a while. I wish I knew how confidence was going to be restored. Just as the stock market seemed ready to draw the average Joe back in, growth slowed and economies began to struggle.

David, after the last five years, I don't know if my heart/stomach could take Jimmy Carter-size inflation. But, what the heck! I'm willing to try. David does raise a very good point. However: Problem No. 1: Will Fed policy move the economy in that direction anytime soon? Problem No. 2: Will some inflation improve the economy? Inflation usually is not associated with growth. Stocks don't do well. The people who buy stocks and would need more real estate would have to be persuaded that real estate is where their money should be. It is a good inflation hedge. So why isn't real estate headed for new highs like gold has performed in recent years?

Inflation is likely, some analysts say.

Would inflation get us anywhere? Raising the costs of goods might be a slippery slope for countries like Greece. I'll take stagflation, if it means keeping some economies afloat.

Anyone have any thoughts on inflation?

Would anti-growth inflation be the right medicine for the economy?
1 vote Thank Flag Link Sat Jun 18, 2011
Loan qualification is certainly an issue, but consumer confidence is still quite low. People are nervous about the economy and whether will they still have a job next year. The key is for people to have more confience in the jobs market.
Web Reference:
1 vote Thank Flag Link Thu Jun 16, 2011
7% should do it. That would still be way below the average since 1971.
1 vote Thank Flag Link Sun May 29, 2011
Give me good old Jimmy Carter type 15% inflation and new higher taxes, and leveraged real estate with tax write offs, will bring back the primary house buyer. Investors are already focused on buying here in Las Vegas

David Cooper Las Vegas Foreclosure Investor in Bank Owned REOs at 20% off. For your Freee List
email: or Call +1-7024997037
1 vote Thank Flag Link Sun May 29, 2011

I think we're learning that low interest rates can cease being a stimulus. People don't really make their decisions on a few percentage points here or there, and the difference between 4% and 4.5%, for example, on a $250,000 loan, is like $70 - not exactly the tipping point for most buyers.

But if interest rates are thought to head from 4.5 to 6.5, well, that's $320/mo, that would move some bodies!
1 vote Thank Flag Link Sun May 29, 2011
It isn't just the mortgage rate it is also lending standards. On top of that the new proposal to require 20% down as well as the proposal to require 5% down on FHA/VA loans have the potential to bring the market to a halt. Make sure to tell Congress not to vote in favor of this new law.…
1 vote Thank Flag Link Sun May 29, 2011
Doesn't matter if people can't qualify to take advantage of it.
1 vote Thank Flag Link Sun May 29, 2011

If there is a magic number I think we have passed it. There will need to be some other incentive or action that will build up consumer confidence again. Lower unemployment figures will help. I think the most uncertainty in home buying is do I have a job 1st, and will I be able to keep my job 2nd. Fear seems to be ruling the normally rational minds of young buyers and others.

Robert McGuire ASR
Your Castle Real Estate
1776 S. Jackson St. #412
Denver CO 80210
Direct – 303-669-1246
0 votes Thank Flag Link Thu Jan 19, 2012
I think the real culprit here is confidence and perception. Some say, "Perception dictates reality." If you as a person or consumer are concerned about your job, your prospects, the economy... you're less likely to take on any additional liabilities, risks, or debt.
0 votes Thank Flag Link Thu Oct 27, 2011
First: We need jobs. Second: Then people need to be able to afford to drive their cars to their jobs. Gas prices are still too high. Pushing $4/gallon where I live and Oregon is not a bustling metropolis. If prices were lower it would give people a little more room to breathe and not feel so strapped. It would lower food prices as well... which would of course allow people to have extra money to do more with... i.e. buy a house, travel, eat out more, etc...
0 votes Thank Flag Link Tue Oct 25, 2011
In our local market we need more JOBS. Not just talk of jobs. We do have plenty of buyers, so we need good listings and banks who can actually move the short sale process. With fewer home owners able to sell-short sales are what we have to work with. But usually the banks take so long in processing the short sales that the buyer backs out.
0 votes Thank Flag Link Tue Oct 25, 2011
Yes, the magic number is 536. We are suffering from a lack of confidence and it is all due to government manipulation in our economy. Business leaders are doing what they are supposed to do; make as much money as possible WITHIN THE LAW and with out intentionally (physically) hurting people. Unless our "leaders" change a bunch of things fast, absolutely nothing will make this market move. Interest rates are at all time lows. Maybe we should pay people to "buy" homes! I am telling my Buyers NOT to buy unless they are confident that their employment situation is solid AND they think they can live in their purchased home for at least five years. Why 536? Keep a close eye on your Congress Person, your Senators and the President. The more they GET OUT of the business of meddling with all our markets the better off we will be. Lenders need the freedom to set qualifications, rates and fees based on competition and risk factors not on the politician's dreams of social engineering. Move on and move forward carefully. Choose your home well and don't worry about "the Rate". Make a long term plan and follow through as best you can.
0 votes Thank Flag Link Tue Oct 25, 2011
Unfortunately, rates make little difference. "Consumer Confidence" needs to rise. There are many optimistic home buyers in today's housing market! They are college graduates with new jobs, families with new babies, and "Baby Boomers" who want to downsize and prepare for their retirement. If you do have funds to purchase a new home (without selling another property), now is the time to buy!

These lower interest rates and lower home prices are inticing some buyers to make a move! The home buying market will get better. As the stock market historically goes up, buyers and sellers will see a future increase in their home's value if the do purchase a new home today.
0 votes Thank Flag Link Tue Oct 25, 2011
The rates are historically low. There is no magic number. The uncertainty in the market is what keeps people from buying. In addition, jobless numbers and the economy are factors.
0 votes Thank Flag Link Mon Oct 24, 2011 interest would do it. But we need a change in attitude in Washington to make any real difference....confidence in the future again.
0 votes Thank Flag Link Mon Oct 24, 2011
The answer is not about rates ... it is about getting people back to work and finding a way to help people hold onto their homes.

We also need to clean up the financial mess from the banks. They continue to make money riding on our backs and stuffing their pockets with cash while turning their backs to their customers.
0 votes Thank Flag Link Mon Oct 24, 2011
I think stability with jobs can bring the economy back and the housing market. People need to feel confident in buying.
0 votes Thank Flag Link Mon Oct 24, 2011
To answer simply: Financial stability. There is still far too much uncertainty in the market and alot of folks are looking over their shoulder wondering if they will even have a job in 12 months. When times are good no one really cares what the rates are, but when times are bad many people just aren't looking!
0 votes Thank Flag Link Sun Oct 23, 2011
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