Rates, incentives make real estate a buyers’ market
Mortgage rates have hit an all-time low, which is causing many to call it a buyers’ market— but experts say it’s more complicated than that.
On Thursday, mortgage rates were about 4.7%, but on Friday, they rebounded to nearly 5% as Wall Street reacts to better-than-expected unemployment numbers.
One local mortgage banker says it’s still not easy to get a home loan.
25-year-old Christopher Regan just bought a 3 bedroom, 2.5 bath home for a deal he couldn’t pass up.
“This is our first home, and it’s kind of exciting,” Regan said.
He says an $8,000 tax credit and rock-bottom interest rates sweetened the deal.
“Even at a 6 percent, or a 6.5 percent, in my eyes that’s still good. It’s lower than my car rate,” Regan said.
Mortgage banker Debbie Bulcock says gone are the days of the so-called “liar loans,” when people didn’t have to prove their income.
“They’ve turned around 180 degrees,” Bulcock said.
She says people need to have good credit, job stability, and a cash cushion— and she doesn’t think that’s a bad thing.
In fact, she says lowering standards is what got us into the mortgage mess in the first place.
“Just putting them into a position where they can’t win. They get a month behind; the late fees stack up, and they can’t catch up,” Bulcock said. “It’s not a good thing to put somebody in that position.”
Realtors say the real estate market is rebounding as the number of homes sold in October increased nearly 40% compared to the year before.
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