Finally some things favor the consumer. A Perfect Storm if you may. Buyers the market is yours - It has been a long time since the market has favored the Buyer so much. There is tremendous value in the Myrtle Beach Real Estate Market, after steep appreciation in 2005 and 2006 you can now jump in and Buy property at pricing of 4 and 5 years ago.
Some facts about the Bailout that will positively affect you as the Buyer of Myrtle Beach Real Estate...
The government bailout is aimed at making mortgages easier to obtain and afford. By shoring up the mortgage financing giants, they can continue buying mortgages from lenders and injecting much-needed cash into the system.
Sunday's federal takeover of Fannie Mae and Freddie Mac will likely translate into lower mortgage rates and greater availability of credit, experts say. Rates could drop by 1 percentage point from the stubbornly-high 6.39% for a 30-year fixed rate mortgage.
The Mortgage rates borrowers pay are dependent on the yields that investors demand when buying mortgage-backed securities from Fannie and Freddie. Investors' doubts about the companies' viability have sent interest rates on those securities soaring. Despite regulators' July promise that they would step in to save the mortgage companies, investors are still demanding rates of 2.25% to 2.45% above Treasuries. Historically, the spread has been 1.25%. With the government now taking over the companies and minimizing the risk associated with their debt, investors may be willing to ease off their need for higher rates.
LOWER RATES + LOWER PRICES = TIME TO BUY
Coastal REO Solutions (CRS) is a firm dedicated to stabilizing real estate market conditions by offering risk-management & assessment services of bank-owned properties.
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