Wake Forest, NC – Why Won’t Rates Get BELOW 5% and STAY there?

If you have been waiting for the bottom you might want to re-think!  I have seen too many buyers in the past play the waiting game – it’s a gamble!

Now really is the time to act if you are in the market for a home – rates are unbelievable and the prices and styles available are the BEST we have seen in YEARS!

Via Eleanor Thorne, Cary Mortgage Loans (Meridian Residential):

So many people are waiting for mortgage interest rates to get below 5% – and then they will Refinance –

Or THEN they will purchase…New House

Well, with rates in the LOW 5’s… NOW might be the time to act!

The thing that keeps rates ABOVE the 5% rate is simple… there are indications that the economy is recovering! (Good News in the Economy is Bad News for Mortgage Interest Rates)

“The ISM Manufacturing Index improved to 48.9 in July, jumping more than 4 points from the June score and marking the fourth straight improvement. This indicates that overall conditions remain in contraction for the 18th consecutive month, but that the slowdown is stabilizing.”

 Here’s what the Chief Economist at the National Association of Realtors Advises:

“Activity has been consistently much stronger for lower priced homes,” [Lawrence Yun, NAR chief economist] said. “Because it may take as long as two months to close on a home after signing a contract, first-time buyers must act fairly soon to take advantage of the $8,000 tax credit because they must close on the sale by November 30.”

Update on Tax CreditNOW is the time to act.  By next year, rates will be well into the 6% range.  If you are thinking about refinancing, and consolidating your first and second mortgage into one loan (we’re saving one guy over $500 a month combining his loan!)… or if you’re waiting for lower rates to purchase… don’t delay!  Call Steve and Eleanor Thorne, Professional Mortgage Planners, Meridian Residential in Cary, NC 919-459-1313.  We have the LOWEST Mortgage Interest RATES!!



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