Welcome to Michel Roy Real Estate Blog

Ready for some more good news? In case you haven’t heard, mortgage rates are getting even better. From the AP:

“Fixed mortgage rates in the U.S. fell to a record low for the second consecutive week, Freddie Mac (FRE: 0.7169, 0.0169, 2.41%) announced Thursday, a sign that Federal Reserve Chairman Ben Bernanke’s recent move to spur the housing market is working.

The 30-year rate dropped to 4.78% from 4.85% a week earlier. The current rate represents the lowest in Freddie Mac’s records dating back nearly four decades.

The average rate on a 15-year fixed mortgage also hit a record low of 4.52%, down from 4.58% a week ago, the McLean, Virginia-based Freddie Mac said.”

—

What does this all mean? The short answer is “Buy now!” (or if you prefer the use of a proverb, “Strike while the iron is hot.”) These measures are all designed to jump-start home buying, and any time mortgage rates get lowered, it’s akin to putting gasoline on a fire.

Are you still thinking about whether or not to buy? Let’s look at the key points here:

-Inventory: Right now, you’ve got just about the best selection you’ll ever find. From foreclosed homes to people trying to get rid of investment property, the volume of available homes is unbelievable right now. It’s not necessarily picking the exact one you want but in real estate, it’s as close as you’re going to get.

-Price: The housing bubble, of course, was one of the key factors in the recession. With values falling drastically over the past 6-9 months, you could call it a market correction or you could call it a great opportunity.

-Mortgage rates: Getting back to our original point, the Federal Reserve made news with the lowest 30-year-mortgage rate ever. If it gets better than this, it’s not going to be much, and playing the waiting game right now for a better deal is unpredictable.

Remember, when demand rises and inventory shrinks, prices go up. All of these factors drive demand, and with signs that the economy has nowhere to go but up, people are stepping away from the fears and making purchases again. With the Fed making its own push to increase demand, now is the time to buy — do it before everyone else catches on.