Your Exceptional Life

I’ve just read a couple of interesting commentaries on the current state of money, mortgage money in particular. Brian Brady has written on numerous blogs that the interest rates are equal to what they were in July of 2007. And he backed it up. Nice job Brian.  The Federal Funds rate was 5.25% in July 2007 and it’s 2.25% now. The lender’s margin in now over 4% and you’ve got to wonder where the money is going. We know where it’s not going. It’s not going to the consumers. Homeowners and home buyers are not reaping the benefits of this low Federal Rate. They’re being dinged the exact same interest rate. ARM is now a dirty word and fixed is King. Yet, property is not selling, it’s sitting on the market. Yes, a shiny penny will still move, but the average home is sitting because now buyers are waiting around for the heavens to open up and let them know that the market has hit the absolute bottom and it’s now safe to buy. Here’s a tip, it’s safe to buy when you financial situation and your personal situation come together in harmony. As I’ve said before, business is cyclical. Real estate is currently in a contracting cycle. If it’s not at the bottom, it’s near enough. If your financial and personal situation warrant the purchase of a new, bigger, smaller, better home, then buy it. Those factors won’t change. If you can afford the home, purchase it. Every moment that you rent when you could own is another month where you cannot deduct any mortgage interest. It’s another month that your landlord gets richer and you tread water. If you can afford the home, then buy it. After all, ya gotta live somewhere.