Anthony Lamacchia Talks to Elizabeth Hopkins on Fox 25 News on How Rates Affect the Market
Related blog: Interest Rates Just Dropped for the Third Straight Week
Buying a home is more affordable than ever for the average person, if you’re looking out for a good mortgage rate interest rates have finally dropped. Joining me this morning is Anthony Lamacchia owner and broker from Lamacchia Realty . And we had some mortgage news recently they were saying that Thursday a 30 year fixed rate mortgage is 4.06% now that can change day to day, but a FHA 30 year fixed is even lower at 3.75% so why is it for the first time in about 18 months we’re seeing lower mortgage rates?
Well this is the good news of the stock market going down; when the stock market goes down because investors have been pulling back a little bit they’re investing in bonds when they invest in bonds you see rates come down which is welcome news for Realtors and home buyers.
Investors have been particularly skittish surrounding the Ebola fears so they’re looking for more stable places to invest their money that means home owners home buyers can look for a stable place to invest their money like buying a new home.
That’s right and I said this about a month ago when I was here the housing inventory is higher than it’s been in two years and now rates are lower than they’ve been in 18 months that makes the next 90 days the best time to buy a home that I’ve seen in two years.
Well I wonder if it’s a good time to buy, you tell me as the expert, as we go into the colder months people are less likely, especially in New England, to get out of their house go to somebody’s open houses and so there may be a trickling of people who are going to look at homes.
That’s right, around the holidays it tends to slow down for the reasons that you just mentioned but typically in the fall we see a bit of a surge. The surge hasn’t really come to a fruition and this year it’s been a little bit slower buyers don’t have as much urgency as normal I think that’s because of the choices, when there’s more inventory buyers can kind of sit back and say well let me look at that house, let me go look at that one and take their time.
Because of that is it time then for home sellers to say maybe this isn’t the right time for us?
Well it all depends on what their motivation is and that’s something we talk to sellers about a lot. If you’re moving to Florida or you have a job relocation you haven’t got a choice you need to sell. But if you’re in a position where you’re downsizing and it doesn’t matter whether you downsize this year or next year then waiting could work out. And I’ll say something that our Sales Manager has reminded me of none of us can predict when inventory will definitely be lower in the spring we think it will, but who really knows for sure.
So let’s say in the meantime you refinance your mortgage 2 years ago or so should you now be saying hey wait a second what exactly are my terms here?
Well anyone who has gotten a mortgage I would say since between a month ago and July 2013 they should absolutely be talking to their mortgage broker to see if they can refinance at a low rate. I mean this spring rates were touching on 4 and a half percent so now someone can get 3.9% or 3.75% or 3.85% they’re going to save a lot of money. Someone with a payment of $2500 a month you take a half point off that it could come down to $2000.
I know you don’t have a crystal ball but when you’re taking a look trend at how the housing market has gone because for a while things were not good and now it seems like there’s and steadily improving is that going to continue to be the case in the next year?
I do think it’s going to continue to be the case because if you look at our recovery it really started in 2009 but it was a very slow recovery and then things kind of went like this through 2013 and it definitely has slowed down there isn’t any question that the recovery has slowed down but things aren’t going down I don’t think they will. WE might see a bit of a pause this fall but overall the market is going to continue to trend up.
So if you want a new home you better be looking now.
Yeah and the thing that I mentioned the last time I was here and I’ll say it again is there was a lot of buyers complaining all spring and all last winter there’s no inventory there’s inventory well now the inventory is out there so get out there looking and step up!
Anthony Lamacchia of Lamacchia Realty thank you so much for coming by this morning.
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