Consider the following…
- The world markets got the crap scared out of them when Dubai essentially defaulted on a very high number of loans… telling their lenders that they would not be making interest payments for at least 6 months. The result of this default has driven risk-averse companies and individuals into traditional safe havens, and one of those safe-havens is US Treasuries. Specifically, the ten (10) year Treasury note. The effect of spooked investors moving to “safe” havens has been to drive down residential mortgage interest rates.
- Since mortgage rates are at their historic lows, as of this writing they were at 4.78%, the “affordability” index moved, such that more homeowners can now afford higher priced homes; or for many first-time home owners they now can qualify to make the payment on a loan.
- The Home Buyers Tax Credit has just been extended and expanded. This continues the window of opportunity (through April 30th 2010) for real estate investors to purchase, renovate and sell homes to buyers looking to take advantage of this credit.
- The continued high rate of foreclosures continues to provide a great number of quality deals to real estate buyers and I predict that this trend will continue for the foreseeable future.
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