Mortgage Interest Rates & Home Prices Fall: In the below referenced on-line Wall Street Journal article, the average 30-year mortgage dropped to 3.94%, while home prices continue to fall, according to Freddie Mac’s weekly rate survey recently released. According to this article home buyers on the fence are waiting for prices to stabilize and not worrying so much about low interest rates.
Nationally, this may be correct. Also, I believe the data is skewed, because many of the homes being sold were foreclosed upon or are a short sale. These properties are selling for much less and pulling the averages down. It is very common for these distress-sold properties to be in very poor condition, which lowers the sales price. Also, another factor in skewing the averages are the re-sale of the large homes. When you sell a home that was once worth $1,000,000 for $425,000, that difference has a huge impact on the average calculations, especially when the average Boise home price is $140,000. Rates are outstanding, prices are outstanding, and I think it is a good time to buy.
Tony A Drost
First Rate Property Management, Inc
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