Interest Rates UP & $8,000 Going Away!
As many of you may know the interest rates have gone up! On Thursday the interest rate for a FHA 30 year fixed non jumbo product with no points went up to 5.875! It was about 4.75% for the exact same product. You can take a look at the attached rate sheet to get further details. Clearly this is alarming due to the need of interest rates to remain low so that people continue to purchase!
What is also shocking is that November 30th the $8,000 home buyer credit will be ending! As many of you may know their are income limitations with getting this money as well! A single individual can not be making more then an adjusted gross income of $75,000 and a married couple can not make more then an adjusted gross of $150,000.
So how do we continue the growth in the United States? First, many economist believe that the interest rates have to be closer to 4% for incentivize individuals. Second, the homebuyer credit needs to be increased and continued without the income limitations it currently has. I believe that even if they do not increase the hombuyer credit, but continue it without the income limitations, it will continue to incentivize homebuyers.
So what do you think of the current interest rates and the idea that the homebuyer credit will be gone? Do we need them to increase the economy or will they hurt us more then they will help us?
Give me your feedback either right here or email me at psingh@rempower.com
Look forward to seeing you in a future workshop!
Prabhjit Singh - psingh@rempower.com