Fixed rate mortgages hit 5%. This is only for conforming mortgages, not Jumbos (over $417k)
Will this spur a new round of buying?
Will this put a floor under the market?
Prices are back to 2003 levels...Is now the time to start looking again?
Tuesday, November 25, 2008
Fixed rate mortgages hit 5%
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7 comments:
I see no reason to buy now though I would love to quit paying my landlord overpiced rents.
I'd say the bottom end of the market has gone about as low as it can go but the middle and upper markets (more so the upper) is still a bit too high. The inventory is still way up there and it's been flat for the past several months. I still think prices are going to go down quite bit. I'll buy when the inventory drops to 'normal' levels and prices flatten out. Or when I can get a clean 2200sf house on 1/4+ acre lot with pool in the 93314 for 200k...doesn't look like that'll be too long from now...
I agree we still have a long way to go before we hit bottom for a couple of reasons:
1) Unemployment will increase which will drive down the pool of buyers.
2)Supply is still way too high. Not just the listed supply, but the thousands of bank owned homes not yet listed, once these hit we take another leg down.
3) The price of oil has come down dramtically and if that continues then unemployment will rise and people will actually start leaving this town. Oil has been hiring and is still in need of employees, these are good paying jobs that will support a reasonable median home price.
4)On the plus side - the median home price is now 3.5 times the median household income.
speaking of oil, at what price does it become not so profitable for producing/lifting Kern's oil?
$18 bbl is about breakeven.
Rates are now at 5.62%
I don't know where you got those rates. I checked bankrate and they are still in the 6.5% range. (for bako- with high fees in this area)
Getting a loan for at 5% w/o a ton of fees would make me consider looking for a deal.
I think there needs to be some drops still in the higher end. Olive Park is still $150+ a foot. Most of those houses aren't that nice. (a few are customs)
Check Kern Schools website for some good local rates.
www.ksfcu.org
I see no reason to get exited if "Fixed rate mortgages hit 5%", because I am totally agree with what Bakersfield Bubble has said, that "we still have a long way to go before we hit bottom". I will also wait to see what happen to this mortgage market and then I will make my moves.
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