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Most often-asked questions

Posted July 24, 2013 in Altoona, Advice Column, Pleasant Hill

Every year I have answered the question “Do you think rates will fall any lower?”

This past year we have seen rates extremely low. Many have taken advantage of some incredibly low rates. The housing market is just getting busy with lots of people purchasing their first home or stepping up to a larger home. Others have begun to fill the market with cashout refinance loans to take cashout of the equity they already have accumulated in their home to begin long overdue home improvements.

I believe people have been hunkered down for so long they are just waking up to the fact that their real estate investment is their best most secure investment. Some parents of college graduates have found another way to use the equity in their home is to lower the interest rate that is attached to their student loans. Student loan rates are going up  as college graduates are looking at 7 to 9 percent interest rate. Cutting that interest rate in half and paying it off using the equity in your home, seems to be a wiser move for many.

Housing report from Lori
Houses are being bought and sold every single day now. Gone are the lengthy listings that sit on your street for months on end. Competition has come back into sales, and sellers are beginning to experience multiple offers coming in on the same day. Buyers need to be pre-approved before sellers will even consider their offer. Construction loans are busy, busy, busy — builders and lenders are busy with borrowers beginning to build their dream homes.

The outlook in the housing market is excellent and moving once again. You have lots of options — fix up your house, sell your home, buy a bigger home or use the equity in your home to accomplish some other goal. Your value is returning to your home as more and more houses are selling.

Back to your question: What are rates going to do? Currently as I write this article. interest rates have been taking a pretty big jump up, though in the past week we earned three quarters of that increase back. Rates at this point in the year are anybody’s guess as to what they will do. But what I do know is, whatever rate you lock in, these rates are extremely low.  I remember interest rates of long-ago days of double digits. Enjoy the wonderful rates we have today, because in my opinion you can’t go wrong.

Information provided by Lori Slings, Valley Bank, 160 Adventureland Drive, Suite H, Altoona, (515) 967-4700  lslings@valleyb.com.





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