Quote:
Originally Posted by FSETH
According to Bankrate.com Mortgage rates rose to 5.56% for a 30-year fixed. That is up from last weeks 5.36%. These rates are still crazy low. Before this recession, people would kill for rates like this. What are you gonna do? Sit around and wait for them to drop back into the 4's? Who knows if that will even happen and even if it does, by then the house you really wanted to buy may be gone??? It is a tax deduction anyway. If you can get a crazy deal on a house right now, it may more than make up for the rate increase from last week in the long run. Plus, you now have the house you wanted.
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There are no deals for anything in a good area, at least for homes over half a mil, you also have a huge amount of homes that were say listing for under 425k back in dec, now listing for half a mil or more. Although the lower range of homes are somewhat stablizing, a vast majority are still priced too high.
For homes 500k and up its the same deal. btw... Anything decent is listing at a 10% premium at minimum. btw what tax deduction aside from what you can usually deduct? You get $8,000 credit from federal if you're buying your first home, and/or $10,000 from state if you buy a NEW construction home. If you make over 75k a year, you are automatically disqualified for the federal credit.
These "incentives" does nothing beside keep house prices high enough to lure a new batch of suckers to buy up the forclosure/REO inventory.
In a few months, the jumbo/ alt-a loans will start defaulting in large numbers. By then you'll see the 500k+ properties start to come back down to reality hopefully.
I'm really tempted to buy right now too but its not really a buyers market right now.
California gave another 120 day free pass to deadbeats, Banks aren't budging on the price for any short sale/forclosure homes that are decent.
I think the only way to possibly get a deal right now in this market is to pay cash.