Let’s start with the good news. The fed decided today to hold interest rates where they are for the third straight time. This is great news for those with ARM’s coming due for resetting and for new home buyers (or for those who will be in the market to buy in the near future.) Rates for home mortgages are likely to stay where they are (according to some analysts) or drift slightly downward (according to others.)
On the negative side, nationwide average home sales slid for the sixth straight month and are currently at their lowest in almost three years. The number of properties on the market is up, days on the market are up, and prices are coming down. If you’re in one of those rare markets that’s holding steady or going up, consider yourself fortunate.
Most analysts agree that the increased inventory, decreased sales, and increased days on the market will lead to a drop in interest rates early to mid next year. That’s good news for anyone who is looking to buy or sell. A decrease in interest rates always stimulates buying activity. Some analysts speculate that rates could fall as much as 1/2 to 3/4 of a point by next year. That would get the ball rolling again.
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