Interest Rates Are on the Rise – Will Murrieta Foreclosures Pricing Be Affected?
Category: Real Estate Trends
Published: Tuesday, July 28, 2009
Interest rates on 30 year fixed mortgages climbed slightly higher this week to 5.39%. That's a slight uptick from 5.35% last week. Interest rates directly affect the bottom line for home buyers, as each increase, even the smallest one, can shrink their pre-approval dollar rating. The more you pay in interest the less you can afford in principal, so finding the right home at a price you can afford becomes more challenging.
Fortunately, the current low pricing among Murrieta foreclosures and Temecula bank homes, as well as Southwest Riverside County foreclosures at large, is keeping buyers in the market. Depending on what interest rates do in the coming weeks, sellers may be forced to reduce their prices once again if sales begin to drop off as a result of the higher interest rates.
Consider a 15-year Fixed on Low Priced Murrieta Foreclosures
Interest rates for 15-year fixed mortgages rose as well, closing the week at 4.84%. This is up from 4.78% a week ago. Fortunately for buyers the prices on Murrieta bank homes, even the executive homes in Bear Creek and Greer Ranch, remain at bargain prices and choosing a 15-year mortgage can help buyers build equity quickly and take advantage of still-historic low rates.
For comparison, a 30-year fixed mortgage for $197,260 (median home price for Murrieta foreclosed homes minus 10% down payment) would be approximately $1,106 per month at today's rates. If you finance the same purchase with a 15-year fixed rate, your payments would be just $1,543! For $437 dollars a month you can reduce your mortgage from 30 years to 15!
Other options include the Hybrid 5/1 Adjustable Rate Mortgage, which remains fixed for five years at 4.58% and then climbs according to the market, as well as FHA mortgage rates which are currently around 5.25% for first time home buyers.
Regardless of which mortgage you select, now is the time to reconnect with your lender and update your pre-approval letter. With purchase dollars impacted by rising interest rates it is important to know how much house you can afford before you make the offer. In addition to getting an updated purchase amount, make sure your interest rate is locked in for an extended period of time, allowing you plenty of time to find the perfect Murrieta or Temecula foreclosures property.
Interest rates are fluctuating weekly in the current economic market. Don't let rate increases keep you from finding the Riverside County foreclosures property that is perfect for you and your family. The foreclosure specialists at Oak Tree Realty Group Murrieta can help you find Murrieta bank owned homes, Temecula foreclosed homes, Winchester foreclosures or Menifee bank homes that fit your lifestyle and your budget. Contact the neighborhood specialists today at 1-877-226-4800.
The $8,000 first time homebuyer’s credit is set to expire in November and buyers are busy finding the best deals on Murrieta foreclosures and Temecula bank homes. The team at Oak Tree Realty Group Murrieta points to possible neighborhoods for great deals on affordable Murrieta bank homes.
Murrieta foreclosures led Southwest Riverside County home sales during the month of July according to market analyst MDA DataQuick. Nearly 1,000 homes changed hands last month and the experts at Oak Tree Realty Group Murrieta put the numbers in perspective.
Buyers of Temecula foreclosures may have less competition from first time homebuyers in the coming months, thanks to a plan by the City of Temecula to complete 110 half-finished condominiums and turn them into affordable housing apartments for rent. The team at Oak Tree Realty Group Murrieta offers insight into the plan.
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