Home buyers rejoice!
Am I being TOO optimistic? Not according to CNN whose lead article on Sunday’s Fannie Mae/Freddy Mac takeover by the Fed opened with the exact line, “Home buyers rejoice!” The Fed’s move to takeover Fannie and Freddy has huge and immediate implications for home buyers. To borrow a quote from my good friend Vince Kingston of Town & Country Mortgage, “Wow, you’ve chosen an auspicious time to start looking for a home!”
Why all the giddiness? Fannie and Freddy’s takeover has brought stability to the reeling mortgage markets. The Fed has essentially guaranteed that there will be funds available for qualifying home buyers, as well as stabilizing the secondary market. What does this mean to you the home buyer? Lower rates! Rates dropped nearly three-quarters of a point today to somewhere between 5.25% and 5.5% depending on the product and the advertised rate. That’s low. Historically low.
In addition, Congress recently enacted legislation providing a $7500 tax credit to first time home buyers. That tax break will only be available for a limited time, however.
Add both of those financial incentives to the current Portland market with its glut of housing inventory and you’ll understand why it’s such an “auspicious” time for home buyers.
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