I think everyone is concerned about the fallout from the recent crisis in Japan. We all feel for those affected, especially if we have friends or loved ones there. It is not my intent to make light of the effects of the earthquake and tsunami, but I’m always looking for the bright side or positive outcomes whenever possible.
We’ve all heard the expression, when you’re handed lemons, make lemonade. Here’s another one of those cases.
An unexpected benefit of the earthquake and subsequent tsunami is that it has resulted in lowering mortgage interest rates. Following the crisis in Japan last week, investors rushed to buy the security of US Treasury bonds, which lowered its yields and other interest rates as well.
Both the 30 year and the 15 year rates dropped this week. The 30 year rate is averaging 4.76 percent this week compared to 4.86 percent last week. Last March, the rate averaged 4.96 percent.
The 15 year rate averaged 3.97 percent compared to last weeks 4.15 percent. Five year adjustable rate mortgages also went down averaging 3.57 percent this week in contrast to last week;s rate of 3.73 percent.
Enough with the numbers. What does this mean to Tehachapi area home buyers? It means that buying a home in Tehachapi now is an even better deal than it was last week. Not only are house prices at very low levels, now it costs even less to borrow the money to buy. That’s just another way that you can save money on the home you want.
Are you surprised to see interest rated going down? I was. If you have been thinking about buying a home, now could be the time to stop thinking and start doing. Give me a call at 661-375-7325 or email me and let’s discuss your options.