With the recent news of the European Debt Crisis and the Chinese Labor Crisis the mortgage bond market has seen quite possibly the biggest rally in 40 years.  Valley County has seen some stabilization in real estate this past year but we are still in a buyer’s market and interest rates are now at an all time low.

 There hasn’t been a better or cheaper time to look at buying a second home, investment property or primary residence.  The average loan for a second home purchase or primary residence at 80% loan to value has been hovering around 4.5%!  

The mortgage bond market seems to be stabilizing in the upper 4% realm and we’ve enjoyed almost three weeks of these record low rates.  If you’re considering buying an investment property, this rate cycle has the best time in almost three years to buy or refinance.  Prior to this dip it was impossible to get an investment property rate under 6% and we have been doing refinances and purchases around 5.25% with 25% equity in the property. 

 It’s hard to tell how long this cycle will last.  Things can change by the hour and this is by far the longest cycle of sub 5% rates.  As the economy picks up, rates will go up with it.  If you have any questions about financing a second home or investment property I’ll be glad help out any way I can.  mailto:ghubner@frontiernet.net