Tuesday, September 30, 2008

We had four offers on one of my listings last night

Don't be afraid that houses aren't selling - they are! Four offers on the day with the worst stock dip in ages... I am a Pollyanna, but I still believe my job isn't at risk....

I just received the following message from a lender, and I thought I'd share it.

Contrary to what the media would have you believe, residential mortgages are readily available. There is no “overnight credit freeze.” Residential mortgage financing is alive and well. Unfortunately, our friends in the media tend to thrive on obscene sensationalism in an effort to outdo each other in the pandemonium levels they can create in the general public.

The reality is that mortgage rates are still incredibly good in relation to where they’ve been historically (e.g., on an historical scale of 5% to 20% for a 30-year fixed conforming loan, we’re currently at just under 6%), and when you couple that with a solid buyer’s market where sellers are more than willing to pay for the cost of permanent or temporary rate buydowns we have an impressively strong buying combination.

The nagging voice in the backs of our heads screaming that “when the masses are trending uniformly in one direction, the savvy investor goes in the opposite direction” should not be ignored. This is a very good time to buy a home.

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