Freddie Mac began a weekly mortgage rate survey in 1971. This week the survey reports that national average interest rates for a 30 year mortgage have fallen to the lowest rate since the survey began – 4.96%. A year ago that same loan averaged 5.69% .
The Mortgage Bankers Association is reporting an even lower average for the same 30 year mortgage this week – 4.89%. They also report that for the week ending Jan. 9, the number of applications filed for mortgage refinance rose to the highest level in more than five years.
Mortgage rates have now fallen for 11 consecutive weeks. We know this won’t continue indefinitely, but how low will they go? And when they do reach the low-point will they stay there for a while or will they make a dramatic climb? My guess is that the government will do what they can to ensure that rates stay low for some time to help buyers enter the market and absorb some of the massive inventory that is out there which will also help stabilize prices.
Next week we’ll welcome our new President to Washington and move into a new political season. The economy will be the administration’s top priority. Today House Democrats announced that they are close to completing an $825 billion dollar stimulus bill that is designed to help jump-start the economy. Will it work? Most experts I’ve heard discussing this feel that it will work, especially in the near-term.
This is all great news for real estate professionals. If you’re a real estate agent or broker, prepare yourself for an increase in business. With low interest rates, low home prices and an economy getting ready to rebound, it’s reasonable to believe that we’re close to a turnaround for real estate. Maybe it’s still several months away, but it’s coming.
For those of you who are not yet licensed, there is still time to get ready to take advantage of this next real estate upswing. Find out what the requirements are for licensure in your state and enroll in a pre-license course. In most states, you can be licensed and working with a broker inside of a month.
Next week should be very interesting with the Presidential Inauguration and more economic news to be released.
It’s time to stay focused and watch for opportunities.
Want to find out if you have what it takes to be a Real Estate Agent or Broker?
About David Goldstein — David Goldstein is an Owner and Founding Partner of Express Schools, LLC. which operates online education providers Real Estate Express, Insurance License Express and License Tutor. Follow him on Twitter.