Great Time to Lock an Interest Rate! May-June 2010

From ABC:

Mortgage Rates Are…Dropping? Interest Rates Near 50 Year Low! It seems counter-intuitive. At a time like this, mortgage rates should be increasing. After all, low interest rates on mortgages are part of what put our economy in the state it is currently in.



So why are the mortgage rates dropping? The European economic collapse is actually quite good for the American prospective homebuyer. Since the crisis in Greece has made investors increasingly anxious that Europe won’t be able to pay off their debts, investors are pouring money into the US via treasury bonds.



The treasury bonds are tied to mortgage rates. Since more investors are investing in bonds, the mortgage rates decline.



This means that the American homebuyer has better prospects at an affordable mortgage. With the recent foreclosure boom, those who have at least 20% to put down on a home have more affordable options than ever.



Even though the mortgage rates are dropping and homes are more affordable than ever, that doesn’t mean it’s easy to get a mortgage. There are still hoops to jump through and lenders are looking for only the most creditworthy homebuyers.



However, if you have strong credit, sound financial footing, and are looking for a home – now couldn’t be a better time to buy.

Happy House Hunting!
~Blalock & Associates
http://www.gohomesearching.com/