Mortgage Rates Drop to New Lows: New opportunities for home buyers

Six years my husband and I refinanced our home at 5.25% for a 15 year mortgage. I thought that was a deal that just could'nt be beat! But this past week-- rates have dropped to 5.5% on a 30 year fixed. Some lenders are offering rates below 5% for 15 year mortgages.

I put this out because some would be sellers are hesitant to sell their home when the market is down. Nobody wants to take a discount. And as a Realtor-- I am usually the one that has to deliver the bad news.

If you sell your home in a down market you are going to have to take a discount. But when you buy a new home you will be theoretically buying at a discount. If you are moving up to a more expensive home--- then it really makes sense to buy now.

If you are selling a 200K home and moving to a 300K home. Supposing that the market eventually turns upwards again ( and it will eventually)--- either way you ride the curb up.

You may take a discount today. But 10% appreciation on 200K is 20K . And 10% appreciation on 300K is 30K. When you throw in the rock bottom interest rates--- this deal becomes even sweeter!

Interest rates will surely rise in the long term. So the opportunity to lock in this type of financing is golden.