Someone told me yesterday they expect that the administration will extend the $8,000. first time homebuyers tax credit into the new year.
That's an $8,000. bet I wouldn't take.
Here's why:
- Interest rates are likely to be above 6% for 30 year fixed mortgages by Christmas.
- The liquidity crisis that many believed was in check when 30 year rates fell to as low as 4.50% in April is far from contained. It could come back with a vengeance.
- Major bank failures continue to lurk on the horizon.
New York based CIT, a major lender to small and midsize businesses according to Bloomberg, is likely to declare bankruptcy on Friday, July 17th. The Fed is betting that it won't pose "a systemic risk" to the economy if it fails.
- The liquidity crisis that many believed was in check when 30 year rates fell to as low as 4.50% in April is far from contained. It could come back with a vengeance.
- Volatility in the bond market can provide opportunity for buyers who are prequalified and ready to act.
- Today's 4 basis-point drop in the 10 year bond provided an opportunity for some borrowers to lock a better interest rate than has been available in the past three weeks.
If you're waiting to pull the trigger on a real estate purchase, it's time to act.
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I'm Mike in Tucson, your preferred Tucson, AZ Mortgage lender.
Call me if I can help you with a purchase or refi mortgage;
(520) 349-9090
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