Mortgage Rates are a Game Changer for Daytona Beach Real Estate

Mortgage rates are at the lowest rate in history as recorded by Freddie Mac. A 30 year fixed rate mortgage sits at 5.14% with points of 0.8 as of today. The Freddie Mac survey began in 1971 and this is the lowest ever.

So now we have a race. With mortgage rates dropping the cost of borrowing lowers the monthly payments for a Daytona Beach condo or home. This makes the real cost of owning much less than two months ago, but the question is, how long will this last. Prices are still dropping, interest rates are dropping. How long will this last.

If you are looking to time your purchase of a home or condo in Ormond Beach, Daytona Beach, Port Orange or the surrounding area at the bottom, low mortgage rates complicate the picture. Here’s why:

$200,000 mortgage at 5.14% = $1,090.82 monthly payments
$180,000 mortgage at 6.5% =$1,137.72 monthly payments

That’s right, if mortgage rates rise and prices fall, you could end up paying more every month for your home or condo.

Waiting for prices to drop could cost you Big Money

It seems unreal, but we believe that this is a big opportunity. Mortgage rates will not stay low for long. They are so low right now because of the state of the economy and the lack of lending. The government is spending a lot of money that will need to be paid back later and we see inflation coming when the economy starts growing again. The government is printing money for these bailouts. Committed and proposed stimulus money is double the current national budget. To supply this money the government will need to borrow or print more money. Either scenario creates inflationary pressure. It’s just a matter of time.

Please Consider Acting Now

If you are a buyer who will finance your purchase, and you are in a position to do so in the short-term, record low mortgage rates have created a limited opportunity for you. Taking advantage of these great rates will give you protection against prices falling.

Please consider this information carefully. I don’t want to see people missing what many are considering a once in a lifetime opportunity. At a minimum, check back here regularly and at my Daytona Beach real estate main site. We will keep you up to date on what’s happening.

Technorati Tags Condo in Ormond Beach, Condos, Daytona Beach Real Estate, Freddie Mac, Homes, mortgage rates

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