Don Davis email: dond@htlnw.com Ph: 360-652-9994

  Those that have waited for the market to improve or think they were   waiting for the “bottom” to hit, it has and is probably past that, on the way up.   There are two things that you have to consider when looking for a home, one is the price and the other is the interest rate you’ll pay. Earlier this year is when the bottom hit. The prices stabilized early in 2009 and the interest rates were in the low 5 or high 4% range. This prices haven’t gone down since then, and in a few local neighborhoods they have actually improved. And now the interest rates are going up. Currently it is getting harder to lock a rate even in the high 5% range and it looks like soon we will be solidly in the 6% range. Now 6% or even 6.5% isn’t a bad rate, and historically it is on the low side. But if you take a look at what that ½ to 1 point difference makes on a $300,000 loan, it is significant. My advice is to ignore the news reports citing National statistics and markets out of our area and look at the data for your own county or even your own town. Locally housing inventories are down and remarkably there are even homes getting multiple offers again. Homes are and will be priced according to market and if the market continues to deplete the inventory then prices will reflect that and the “bargain” you were hoping for is gone forever. Now on to the rates. As the economy suffered bond yields reflected lower returns, since a lot of money was moving in to them. That meant lower interest rates for you. As the economy picks up steam and the stock market continues its uphill climb, band rates will go up and so will your interest rates. That is what has occurred over the past month or so and it looks like it will continue on that trend. My advise, lock, lock, lock your rates. If you have a FHA or VA home loan and you locked at a rate that is higher than what you could get later, there is a “streamline” rate/term refinance that allows you to inexpensively refinance and lower your rate. So you have protection with a simple and cheap refinance if rates ever do go back down. The experts are saying BUY NOW! Don