Mortgages – People Are Signing Up

Posted by kirk on Aug 29, 2011 in Loans | 0 comments

I took a visit to the mortgage broker myself today, it was to Guild mortgage just downstairs from where I work.  When I walked in there was no secretary, and the phone started to ring.  Somebody answered the phone behind a wall that I couldn’t see, and I could overheard conversations about mortgages as well.  It looks like the mortgage brokers are getting busy.  What that means is, homes are going to be purchased faster and faster!

Interest Rates – Holy Shnikeys!

Posted by kirk on Aug 11, 2011 in Loans | 0 comments

I just watched Tommy Boy, and I feel like the phrase “holy shnikeys!” needs to come back.

Source: Wikipedia

Anyway, have you seen the interest rates – they are friggin’ incredible.  They are down to 4% on a new 30 year home loan.  That’s a guaranteed interest rate.  To get how awesome that is, in the early 80′s interest rates were nearly 19%, that’s a credit card.  People were paying for homes that would be the equivilant to putting the entire thing on a credit card!  That’s interest through the roof!  You’d pay for three houses by the time you’d pay that thing off.But now, buying a home is basically free!!!  OK, not free… but instead of paying for 3 houses, you’re paying for and a bit.

And finally, the world is starting to recognize this.  This is getting people excited about buying homes.  Heck, it’s getting me excited about buying a home.  We need to save our mula!  But here’s what the reality might be – as people are getting interested (perhaps a lot of people), there are going to be more offers on homes.  I have a hunch that this will actually start to drive prices of homes back up because more buyers means higher prices.

So the question I am posing is: Did we just miss the boat on the best time to buy a house?  Give me your thoughts!