Mortgage Rates Could Offset Boise Housing Price Rises

When the Wall Street Journal or Forbes run mortgage rate stories as their lead items, I am one of the agents who keep an eye on the  Boise real estate market and I pay close attention.   But when even the non-financial outlets like USA TODAY and the cable TV news channels give top billing to real estate market news, it’s a real eye opener.

That’s what happened last week. USA TODAY’s online headline focused on the 15-year fixed mortgage rate, “at a record low 2.61%.” The cable news channels talked about record low rates.

 Never mind that; it’s still surprising that mortgage rates continue to linger at such fantastic lows.

The reason is not a secret: the Federal Reserve is holding rates down to energize the real estate market — a key element of the overall economy. Yet, with existing home sales notching up in the first quarter at the briskest pace in four years, you would have thought that mortgage rates would have been loosened up at least somewhat. And, with new home sales doing their best since 2008…

Of course, it doesn’t matter what anyone expects: the results of dipping mortgage rates is just plain good news for everyone in the Boise real estate market: both buyers and sellers alike. Those low mortgage rates act to offset the rising U.S. house price index. The result for buyers is a more valuable home without the expected increase in the monthly payment. What more of an enticement to enter the real estate market could there be?

If you’re considering whether it’s time to buy (or to sell your current home and trade up without pushing the household budget), last week’s national and local market signs are even clearer than they have been recently. There are many opportunities out there! Give me a call and I will give you a current Boise real estate market evaluation?