Mortgage interest rates at record low, but don't get too excited
Tammy Vo reportsPhoto: Video by kgun9.com
Record low mortgage interest rates may be nothing more than a tease.
Reporter: Tammy Vo
TUCSON (KGUN9-TV) - The real estate market is buzzing about record low interest prices, bottoming out on Thursday at as low as 3.5% for a 30-year loan. Analysts say, we haven't seen these rates since the 1950's. For some, it's a green light to buy fast or refinanace but for so many hurting homeowners, it's nothing more than a tease.
Realtor Stephanie Ybarra of the Remax-Excalibur Michelle Niles Team is in a unique situation. She sells homes for a living and wants to buy a home, but can't after losing her dream house to foreclosure a few years ago.
"It was the house I bought when my son was with me. My little 'mom' house. Two bedrooms, two baths..." said Ybarra. She went on to explain how she lost her home. "A huge house payment, two mortgages on my house and a business that required that I had a lot of money coming in and all of the sudden, I didn't". She, better than anyone can understand where her clients are coming from. They are eager and reliable buyers who became victims of the housing market, and are now struggling to take advantage of great interest rates and home prices. She thinks it will be another five or six years before she can purchase again. She thinks that the government could do more to offer programs for people who lost their homes to the failing housing market.
At Fairway Independent Mortgage, they've been busy. People are ready to buy or refinance, but their credit is still scarred from foreclosure or their home value has dropped so much that the bank won't do the deal. Loan officer Mark Tronziger often has to break the bad news.
"I say, I'm sorry you're appraisal came in at lower than what was estimated and it's at a point where you can't financially take advantage of the rates out there. It's a tough conversation to have. People get their hopes up. It's like a tease. The rates are there but you cant take advantage of it in many cases. So many buyers have been eliminated from the pool because of short sales, foreclosures and have tried to work with banks on loans and the banks aren't willing to help them. Now, those buyers are excluded from the buying pool for at least the next 2-5 years" added Tronziger. He saysl, if you can't qualify for low interest rates right now, hang in there and hopefully property values will go up and rates will remain low.