The Sacramento Fence-Jump… As Busy as a Hot June Market
December 7th, 2008 Categories: Mortgage and Loans, Real Estate News, Sacramento RE Stats, Sacramento Real Estate
…and a $45,00 jump in purchase price for the same payment!!
Buyers are coming out in swarms here in the Sacramento area, after a series of rate cuts and a sense that prices are “close enough” to a bottom.
The rate cuts are not over, either, with talk of them going to 4.5% sometime soon… The cut will allow buyers who have already been looking to buy a much higher priced home.
If the government follows through with their plans and the Treasury Department implements the actions they are talking about, rates could go as low as 4.5%, most analysts predict!
That means that a buyer who has the means to qualify for a $200,000 mortgage with a 6% rate and a principle and interest payment of $1,199.10 could now afford a $236,000 mortgage with essentially the same payment if rates were to drop to 4.5! In that price reange, that is a HUGE difference in the quality, size and ammenities in houses!
Now, none of this will help people find jobs, or help those who are already behind in payments. It won’t even have an effect on the amount of foreclosures in the short-term, but it certainly will help us to get houses off the market and help some home buyers who are qualified to buy much more home.
