Eisrael Gomez Realtor - Monterey County Blog

 30-Year Mortgage Rates Slide

Spurred in part by unexpectedly weak economic data that could signal an impending recession, borrowing costs on long- and short-term home loans dipped during the past week.

Freddie Mac's statistics show a decline in interest on 30-year fixed loans to 6.07 percent from 6.17 percent last week, while 15-year fixed rates slid to 5.68 percent from 5.79 percent.

Adjustable-rate mortgages also registered lower interest, with five-year loans settling at 5.78 percent compared to 5.9 percent a week earlier and one-year products coming in at 5.47 percent for the week, down from 5.53 percent the week before.

Source: San Jose Mercury News (Calif.), Martin Crutsinger (01/04/08)

What does this translate to?  How about this.  Let's say you are looking for a 2 bedroom 2 Bath condo in North Salinas about 1100 square feet.  A foreclosed unit should go for about 180,000. 

Rate	6.07%
Price	$ 180,000
Down	3%
	$ 5,400
Term	30 yr fixed
Monthly	$1,054.69
Est Taxes	150
Est Ins	42
HOA	325
Total MonthlyPmt:	$1,571.36

How's them apples!  Of course, these are estimates and your results may very, etc, etc.   But, this estimate is a pretty good example of what you would pay monthly.  When you compare that to rent, and you are talking about your own home!  Not bad!  Time to fire the landlord!!!!!

Many Monterey County investors are coming and buying units such as this because of the low rates, and they are near break even.  If we put 20% down the Total Monthly Payment changes to $1,385.67!  No wonder investors are starting to make offers on properties that have been sitting around with long market times.  After all, this is Monterey County.  Our growth projections are incredible.  So this may be one of the best times to buy. 

Low rates, low prices, lots of foreclosures and negotiable sellers!  All saavy investors say buy low sell high!  This may be the time to buy low!  Don't wait for the media to change it's tune and get everyone on the bandwagon. You want to be making offers when no one else is making them.  Most people sitting on the fence are beginning to look,  right now!  Many of the good bargains do go quick, as investors and their Realtors are watching and waiting. 

I don't sell loans, but I do sell homes.  I hope you find the above informative. I would love love to hear your comments or questions.  E-mail me egomez@gomezhomes.com or call me at (831) 809-8266.  I look forward to hearing from you!

Eisrael Gomez

CENTURY 21 A Property Shoppe