When is a bad economy good for Real Estate?

The Stock market has gone down almost 2,000 points since the beginning of the year!

Job growth has slowed! http://www.cnbc.com/2016/02/05/us-created-151000-jobs-in-jan-vs-190000-est-unemployment-rate-at-49.html

Almost all economic indicators are either down or flat.

There is a lot to be concerned about with this uncertain economy.

So why is this a great time to buy a home?

With all of the economic uncertainty lately, you might be tempted to wait before deciding to purchase a home. This could be a costly mistake.  Interest rates are once again at another historic low. Nobody thought that we would have interest rates this low again, but they are. In fact, a conforming 30-year fixed mortgage, is currently 3.75%, and a jumbo loan is only slightly higher at 3.875%.

These extremely low rates will save you hundreds of dollars on your monthly payment and thousands over the life of the loan.

Interest rates like these are a true bargain they make the cost of owning a home much more affordable.

It’s a fact that has not escaped the notice of many savvy home buyers, as mortgage applications are up 9.3%, that means, you have competition.

http://www.cnbc.com/2016/02/10/wealthy-borrowers-behind-jump-in-new-mortgages.html

The inventory for new homes on the market in Los Angeles is extremely low, so with more people trying to purchase a new home; it can be more than a little frustrating to say the least.

My advice is…don’t give up! These historic low rates are a direct result of the weakling U.S. and Global economy.  They will not last forever, and just a slight increase in rates will cost you hundreds of dollars more a month on the same house at the same price.

Remember it’s all about your monthly payment.

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