By Carl Fischer
Despite the gloom and doom so widely referenced in the national media, there IS a silver lining for those who can take advantage of it.
According to Freddie Mac in its weekly mortgage market survey August 5, “…the 30-year fixed-rate mortgage, the most popular choice among buyers, averaged 4.39 percent this week, its lowest average for 2011. The 15-year fixed-rate mortgage and the five-year adjustable rate-mortgage also both reached new historical record lows.”
So if you’re in a position to purchase a home, or re-finance the one you have, right now would be a great time to do just that.
The Metropolitan Regional Information System (MRIS) reports that average Days On Market (DOM) for July was the same 55 days as last year this month, with closed sales and dollar volume both up over 11 percent here in Loudoun County. But June sales were nearly 20 percent lower than the previous month, affirming the generally weak condition of the residential market.
The residential market looks to be “as is” for the next 12-18 months. In their 1st quarter report for 2011. the National Association of Realtor reports that there were 1.98 million homes in foreclosure in the US at that time, down from 2.05 a year earlier. This huge “overhang” of troubled assets will eventually find themselves on the market, competing with arms-length sales, and eroding the prices of those homes in the process.
Before committing to any change in residential ownership at this time, be sure to speak with a seasoned Realtor about your options; there’s a lot at stake for you and your family.