Fannie Mae and Freddie Mac bailout will lower interest rates!
The bailout of the mortgage giants Fannie Mae and Freddie Mac may be viewed as controversial, but it will affect Charlotte Real Estate in one way or another. Although I’ve read where others thought it would do nothing, it now seems apparent that this conclusion is far from the truth. We’re already seeing some positive results from the decision here in Charlotte and around the country by means of more affordable lending.
Rates for a 30-year fixed mortgage for homes for sale in Charlotte dropped to a five month low this week and real estate agents in Charlotte couldn’t be happier! OK, I bet most real estate agents don’t even know about it yet but I’m pretty happy. The cost of financing has a direct impact on how much home a person can afford and thus, has an effect on the entire market in General. Less expensive financing mean higher priced homes get sold and the saturation of the market can at least begin to subside.
Rates on the most popular loan, the 30-year fixed, have dropped below 6 percent to 5.93 which is down almost a half a point since just last week. These rates are tied to the stock market and since investors are less nervous about the failure of Fannie Mae and Freddie Mac than they were a week ago, rates have fallen. 15-year loans are even lower at lust 5.54%
If you’ve ever considered buying a home here in Charlotte NC or anywhere, now is the time, Now Is The Time, NOW IS THE TIME! I really can’t get over the number of times I’ve heard a buyer ask if the market was stable enough to make a purchase. Suggesting that they’d rather the homes for sale in Charlotte go back UP in price before they make a purchase? As though that is going to be a good thing for them?? Some have even made the decision to wait after getting the advice to buy, I guess they though I only wanted the commission. 
If a buyer would really rather wait for increased values, they don’t have to wait long. Homes in Charlotte NC are still going up in many places. Sure, there are several “balloon areas” around the city like Waxhaw and Mooresville which experienced greater than normal growth in recent years and thus, have felt the impact of all of this a lot more. But it’s just a reset, and it’ll come back, AND- why wouldn’t that make a buyer want Charlotte Real Estate NOW vs. next year when it costs more, or in ’10 when it costs a LOT more?
Whatever the case with that, these new, lower rates will have us on the road to the right kind of balanced market that benefits everyone in Charlotte, NC and around the country.
