Have you been watching the daily financial news and been wondering how QE3 affects interest rates & home prices? Last week, it was announced that the interest rates for a 30-year mortgage had dropped to the lowest level ever of just 3.4 percent and the interest rate for a 15 year mortgage dropped to a super low level of 2.73 percent. Yes, QE3 is making buying a home almost irresistible for people who have been sitting on the fence. For those waiting to buy a home for some time or just waiting to sell their current homes and upgrade to a bigger home, now is your chance.
Thank You Ben Bernanke
One of the key players that Orange County realtors can thank for the real estate recovery for is Fed Chairman Ben Bernanke who has been buying up mortgage backed securities like crazy. He has been leading the charge that the Fed has been doing to keep the economic recovery going.
A recent survey by the Mortgage Bankers Association showed that mortgage refinancing has jumped to the highest level in three years who interest rates for home loans has continued to drop to new lows, seemingly every month.
HARP Improvements Also Helping Real Estate Recovery
Besides the work of Ben Bernanke, another key factor that’s helping the real estate recovery is the improvements that have been made to the HARP program, which is making it possible for home buyers, even underwater homeowners, who might be underwater by as much as $125,000 or 125 percent of their homes value to refinance their existing mortgages.
The good news about improvements with HARP is that prepayments are also up by almost 70 percent; the improving housing market is good new for the Fed and President Obama since more people in the United States still equate home ownership with the “American Dream” and if home ownership is within their reach, they will be more likely to keep the current Presidential Administration in office with the hope that the improvements to the real estate market will continue in 2013 and beyond.
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If you still have questions about how QE3 affects interest rates & home prices or have questions about buying a home in Orange County, contact us today at (949) 272-0125 or email us at email@example.com.