Typically, no news is good news, but in this event, there’s been lots and lots of news- and ultimately it’s been net positive for those looking to take a mortgage.
Rates crept up about 3/8 of a point over the last month, only to go right back down in the last week.
News about Greece pushed rates up, then Italy and Unemployment Numbers did their work.
Ah, Venice
My go-to brokers are seeing much of what I’m seeing- foreign buyers are driving much of this market.
Frank Cronin of HSBC
is seeing about 40-50% of his mortgage business as foreign buyers.
His feeling is that it’s a “matter of perspective.”
What US homebuyers lack is confidence, while foreign buyers see the New York City market with more confidence.
I can see this mortgage blog post turning into another Love Letter to Buying in Manhattan.
Perhaps it’s really a love letter to leverage.
Rates are SO low, and pricing except at the very high end has been pretty stable.
Why wait?
Rates will likely not get much lower or much higher in the near-term, but if banks are willing to lend at 80% up to $2mm, anyone can take full advantage of tax benefits of a mortgage.
Ultimately, I’ve been writing here over the last few months that
at inflation and an improved stock market will likely be the drivers of mortgage rates going up.
However, it could very well be that the stock markets begins to recover, and rates stay where they are.
If that happens, property prices could really begin to improve.
So, opportunities to get debt at very low prices remain.
While properties prices are down, perhaps a time to take a very good look at the overall costs of purchasing.
Thanks, Scott