Rates remain low and extremely attractive for buyers, as investors’ (in the stock and bond markets) expectations for inflation possibilities seem to be further out on the horizon. And the Fed just doesn’t want to upset the fragile recovering economy, so it is projected that short-term interest rates, as well, will remain low for a while longer.
Another note: Fannie Mae/Freddie Mac underwriting guidelines for second homes have taken place, effective at the beginning of the month. Second homes are now pretty much limited to an 80% loan-to-value. Most consumers are still not aware of this change – and some lenders may “forget” to apply the new guidelines to old files, so make sure your second home purchasers are still qualified to buy – especially if they were pre-approved (or prequalified) prior to Sept 1st – and they have not yet ID’d a property.
Ginger Sullivan, Anasazi Mortgage