I am going out on a limb here a bit and saying that if this rate gets down to 4.5% we are going to see a small buying frenzy, which may affect a few small areas where inventory isn’t off the charts.
I think the idea of pushing rates down is ridiculous although I feel it may be my only opportunity to take advantage of all these silly measures our government is making to save the irresponsible. Chances are I am going make a purchase, as I feel that even if the markets retreat another 15-20% we could very well see the prime rate close to where it was in the early 80’s within a few years. If you don’t believe that this fake money the government is creating out of thin air will drive inflation you are sorely mistaken.
I don’t think this lowered interest rate is going to do anything for this market long term, but short term of course there will be a bit more demand. I have spoken with a few friends who might actually take advantage of this drop in mortgage rates, it just seems like a no brainer at 4.5%.
I currently pay $2,500 for a home in Coastal Carlsbad that I may be able to pick up for $550K. If that is the case with a 4.5% loan I could be at $2,900 PITI with 10% down. Does anyone else think this is a bright idea? I would love to hear your thoughts.
