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Is Now The Right Time To Buy?

Is Now The Right Time To Buy?

Have any of you ever seen such low mortgage rates? I know I haven't! I remember growing up my parents always used to tell me how they bought their first home at an 18% interest rate. Wow! This week I put a nineteen year old first time home buyer in a new home at 2.375% and he moved in with only $500 out of pocket. 

Now, no one can tell you when the right time to buy or sell is but here at The Morcom Group we want to make sure you have all the current real time information to make sure you make an educated decision. As stated from the world property journal “Mortgage rates fell below 3 percent for the first time in 50 years. The drop has led to increased homebuyer demand and, these low rates have been capitalized into asset prices in support of the financial markets.”Home buyers have rushed back into the market eager to take advantage of these low rates. In case you were wondering, here is what the current...

So, what's up with the financial markets and how does this relate to real estate?

As expected, the Fed cut policy rates by 0.25% at their most recent meeting. You might recall that the Federal Reserve committee voted unanimously to decrease rates by a ¼ percentage point at their July meeting, effective on August 1st

Who is the Fed? 
The Federal Reserve Board (the Fed), controls the Fed Funds Rate and the Discount Rate. These are charges for overnight loans from bank to bank or from the Fed to member banks. 

What does a cut mean? 
• It could cause banks to reduce their “prime rates,” which are often used to calculate interest on consumer products like credit cards, private student loans, and home equity lines of credit (HELOCs). Adjustable Rate Mortgages (ARMs) may be directly impacted as well. 
• Fixed mortgages are typically based on...