Mortgage Rates to be cut to 4.5%???

Mortgages to be cut to 4.5%?

I just watched this video posted this morning from a popular news show. If the rates do go down to 4.5% for new purchases on homes do you think this will stimulate long term growth in the housing market?

The first question is whether it will happen at all. From what the video says this is a proposal that the lobbyists are trying to get passed. In essance, this is a bailout plan for new construction and home builders. In Clermont County Ohio, Cincinnati Ohio and other surrounding suburbs around here the question isn't whether people can afford the new home of thier dreams, it is whether they can sell thier current home that has been sititng on the market for a long time. If the builders around here like Capital Custom Homes are any reflection on the real estate market as a whole they are not seeing much activity at all. The land listings that we have are sitting with little or no activity.

As we look forward to a more positive 2009 I hope the policy makers in Washington will do what they can to support the purchase of homes from a first time homebuyer perspective. I think once this part of the market is stimulated and can grow again we will then see the results trickle throught the rest of the system.

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Derek Tye has been an influential Realtor in the Greater Cincinnati Ohio Market for over 4 years. For more information about our Greater Cincinnati Ohio Real Estate services we offer please call us at 513-732-2720 or visit our website at www.CincyOhioHomes.com . Don't miss our Testimonials!