Interest rates cause buyers to take action.

Interest rates have been below 5% for the past several weeks. Many buyers in the market felt they were in a safe position with the struggling economy believing that rates would remain about the same for some time. Over the past week however that has not proven to be the case. Buyers are noticing their opportunity for an incredible interest rate starting to fade as the summer begins to come on full force.

Just in the past week, three buyers that I have been working with all decided it was time to secure a home before the rates spiked further. Disappointment gloomed about them as running the numbers started to show just how much more they would be paying for the same home verses just 2 weeks ago. Realizing that the rates were likely not to improve however, buyers seem to be making a move before rates climb even higher.

This is an incredible market right now, with the credit for taxes this year, the selection of homes, as well as how much prices have come down make this a prime opportunity for any first time home buyer that is ready to buy. It doesn't get much better than this. Often times in history there have perhaps been times where there have been less buyers than today BUT to have a combination of few buyers and incredible interest rates make this one of the best opportunities.

Back in the 80's Interest rates loomed around the upper teens! it was not uncommon for a buyer to pay 18% in interest. Compare that to the average interest rate of 7 or 8% and you realize just how pricing interest was. Take another look at our low rates today of 5.5% and you will realize that while the rates are on the rise, we still stand in an incredible market for low interest rates. Buyers are realizing that these low rates can not last forever and with the sudden rise in interest, buyers are seriously making there moves today.