My New Blog

The Federal Reserve once again lowered interest rates. As a matter of fact, this is the second time in a little more than a week that rates have been lowered. Most people assume that mortgage rates go down when the Federal Reserve lowers rates. This isn't necessarily the case. Often, mortgage rates increase following a Fed rate cut. Actually, it's impossible to guess what rates are going to do. I have people ask me all of the time that they are going to obtain a mortgage loan within the next 1-6 months and they want to know what the interest rate will be. This is impossible to predict. Honestly, I don't know what the rates will be tomorrow. With that being said, rates are still really low-the lowest they have been in about four years.

I talk to realtors on a daily basis and if you are interested in buying a home, now is a great time to purchase for several reasons. One reason, as mentioned above, is that interest rates are really good. The second reason is that there is an abundant amount of homes on the market right now. This is a simple case of supply and demand. When there is an oversupply of homes on the market, you will be able to find a better deal. Market times will be longer for homes on the market and certain sellers will grow impatient and will be willing to sell their home at a lower price.

Well, Superbowl Sunday is this weekend and like many of you I will be glued to the television set. My team went out in the playoffs so I'm not really rooting for either team. The best part about the Superbowl is the great commercials. I read that a 30 second spot during the game is going for over $2.5 million. All I have to say about that is WOW!