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THERE IS ALWAYS SOME GOOD NEWS
The best news about this market is that inventory is shrinking. There have been many months in the last couple of years where we have seen a decrease in demand like we are seeing this month. There was a decrease in closed sales and number of homes under contract this month over both last month and the same month last year. There is good news, however. The inventory has started to decrease much earlier than it did last year.
Of course the other piece of good news is that the interest rates are still very low. They continue to hover around 4%.
I had a closing last week with a buyer who was borrowing about $300,000 at 3.75%. I took a peek at her amortization table at closing and was amazed to see that with her very first payment, she will be paying off $450 of principle. That is amazing. Even if prices don’t go up as fast in the next 10 years as they did in the last 10, when she gets ready to sell in 10 years, she will have a lot of equity in her property. This is the concept of low interest rates that it is difficult to get the general population to understand.
If you have not refinanced, do so now. If you think you can’t qualify, call your lender directly, not your mortgage broker who did your original loan. Some have special programs that will let you do non-qualifying refinances. It never hurts to ask.
As always, if you need any advice on your own unique situation and how it has been impacted by this market, please don’t hesitate to contact me.