Pam's Prescott Blog

Mortgage rates at their lowest rates....EVER?

Employment numbers UP dramatically for January...

If this isn't enough to tell you that the recession is over and it is time to buy, consider this:

John R Talbot, previously of Goldman Sachs investment banker, is a bestselling author and economic consultant. When it comes to the housing market he is also a prophet. When housing prices started to skyrocket in 2003, he published The Coming Crash in the Housing Market correctly warning us that a real estate bubble was forming. Then in January 2006, he call the absolute peak of home prices in the US by releasing a new book, Sell Now! The End of the Housing Bubble.

Mr. Talbot, the person who accurately predicted the housing bubble and its bust, now has a new prediction – IT IS TIME TO BUY A HOME! In a recent article, Homes – Buy Now! Talbot simply explains:

“I have been waiting for more than five years to offer this advice. It is now time in most cities across the country to buy a new home or refinance your existing home with a thirty year fixed rate mortgage debt.”

He goes on the explain that his conclusion is based on several different metrics, all of which favor buying today:

· Homes Prices Relative to Peak Prices During the Bubble

· Home Prices Relative to Income and Rents

BOTTOM LINE

If the person who called the real estate bubble and its bust says now is the time to buy, we believe it is time to buy!

This comes from Sandra Collette at W.J.Bradley Mortgage.  She can be reached at 928-775-9330:

Historic Low Mortgage Rates:
Seize YOUR Opportunity



With all the tough gloom and doom talk out there, it might be hard to believe this, but now has never been a better time to buy a home. True, the economy is in recession, but a quick look at the real estate market — and especially a look at home financing history — will clearly demonstrate that if you are looking to buy a home or refinance your existing loan, now is the time to make your move.



For starters, new home prices are down. The Census Bureau, which has tracked new home prices since 1963, shows that the average home price for a new home is on a five-month low, with June's median price currently at $242,00, down from February's $284,100 (not to mention the heady days of March 2007, when the average hit $329,400). New home prices haven't been this low since October 2003.

And while the average sale price for existing homes recently ticked up between April and June, with June at $230,900, they were previously on a downward trend that continued from 2009 into March of this year. Comparatively, the overall average existing home price for 2007 was $266,000 and 2008 was $242,700. It should also be noted that the slight upward trend experienced from April to June could have to do with the homebuyer tax incentive, which came to a close in June, so July's and August's statistics could show a move to even more inviting home prices.

Attractive home prices aside, the resoundingly inspiring news lies in current home financing rates. The Federal Home Loan Mortgage Corporation (Freddie Mac) recently reported that mortgage rates were at their lowest level so far this year, and that rates for conventional 30-year, fixed-rate loans were heading to an all-time low. The latest reports from Freddie Mac put 30-year mortgages at 4.72 percent. That is the lowest rate since the week ending Dec. 3, 2009, when it hit a record low of 4.71 percent.



Let's put this in a historical context. The average interest rate for a 30-year loan was 5 percent over the last 12 months. The average over the last 10 years was 6.13 percent. The highest rate since January 1964 was 18.45 percent in October 1981. The lowest rate since January 1964 was 4.71 last December.

That is some history lesson. No matter how you slice it, today's home prices and mortgage rates represent an historic opportunity that cannot be ignored. Whether you are seeking to purchase a home or refinance, now is your chance. Let me tell you more about how you can leverage this bright point in the economic gloom.

Rates and home pricing statistics were accurate as of the writing of this article.

We've done it again! 

It's no surprise that Money Magazine has ranked Prescott the #4 Top Places to retire in the United States!  Prescott is beautiful, comfortable, and full of history, culture and things to do. 

And now that prices have dropped so much, it is more affordable than ever!  Check out what Money had to say at this link:

http://money.cnn.com/galleries/2010/real_estate/1009/gallery.best_places_retire.moneymag/4.html

I just love it when Prescott gets the props it deserves, don't you?

Pam