By Reid Guy
If you and your family have been struggling with the decision on whether or not to buy a new home, now might be a better time than ever before. On March 18, Freddie Mac released the results of its Primary Mortgage Market Survey, a weekly report of mortgage interest rates.
The results showed “the 30-year fixed-rate dropping to 4.76 percent while the 15-year fixed-rate hit its lowest rate at 3.97 percent since December 2010.” Last year at this time the 30 year fixed mortgage rate averaged 4.96 percent, while the 15-year FRM was at 4.33 percent.
Frank Nothaft, vice president and chief economist of Freddie Mac, reports, "With the crisis in Japan, investors rushed to buy the security of U.S. Treasury bonds, which lowered its yields and other interest rates as well. This allowed fixed mortgage rates to drift lower this week."
Another reason now is a good time to buy your new home is the number of choices available. Most markets have more homes for sale than it does buyers, so there might be a lot to choose from in your area. This type of market also gives the buyer leverage in negotiations.
There are also a large number of foreclosed homes available in many areas. Most foreclosures are homes owned by banks or asset management companies, and they want to sell their inventory, fast. This might allow a potential buyer to get a great deal on what could possibly be the home of their dreams.
You might be in a situation where you need to sell your house before you can consider buying another. If this is the case, remember you can always sell your home for a little less now, because you might get a much better deal on the one you are buying. In the long-term, you and your family might come out financially better by making the investment now.
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