Yesterday was the largest single day interest rate reduction the Fed's have made since roughly 1984. The 30 year mortgage rates dropped much faster than I expected they would and in our small community the banks reacted very quickly. For those of you who live in smaller communities know that the local community banks often times have challenges competing with the bigger national banks but the service from the smaller home town banks generally outshine the big banks.
I have been in the real estate business for more than 20 years and the recent interest rate reduction has really enhanced the affordability of home ownership. I look back when I got into the real estate business back in 1986 when the interest rates were 11.5% for a year fixed and I compare that market to today and as real estate agents we really don't have it that bad. Back in the 1980's there was no ZERO down loans other than FHA and the 5% down loans had such tight qualifying guidelines that only the client who had a killer job and lots of cash could generally get a 95% LTV. My point is that the market has a lot to do with our attiitudes and how we react to the market and the media.
I put a quick little unedited video together that might help give some of the real estate community a slightly different view of the housing market and why today truly is a great time to buy a home. If enough of us spread the word that the market is full of buying opportunities together maybe we can make a difference.