Again, the headlines read:  30-year mortgage at lowest rate since 1971

But wait, we might have to blog again next week that that the 30 year mortgage rate is at it’s lowest since…1960.  1960 was the year where the home ownership rate was as low as it is today.  The ultimate question for this statistic is how much total inventory is on the market today vs. 1960.  Staggering numbers.

http://www.usatoday.com/money/economy/housing/2010-08-02-1Ahomeowners02_ST_N.htm?csp=hf&loc=interstitialskip

As mortgage interest rates continue to decrease to stimulate buying, and home ownership rates continue to drop, does one really have anything to do with the other?  Decrease in mortgage rate alone doesn’t seem like the fix for the decline in home ownership rates. One of the main reasons why this rate is dipping so low is fear.  Numbers have slipped because of the foreclosure crisis, and former h0meowners, who are now in the rental pool, probably could care less about potentially putting themselves in a bad situation again.  At least, that’s the potential mindset.

If you have buying power, everything is falling in place for you to get a smoking deal.  The laws of supply and demand take over, and since supply is high, prices drop.  Add the fact that money is extremely cheap, as low as it’s been in most of our lifetime, and you have plenty of purchase power at your fingertips.

Even if you’re a cash investor, it’s hard to turn away the idea that you can get a 30 year fixed at 4%, rather than have a heavy outlay of cash held up in a property.  Leverage vs. more leverage.

When the time is right, people rarely realize it.  It could be staring at you right in the face, most look away.  It might have to just grab you and force you to look at it.  The time is right to pick up property, whether primary for yourself, or as an investment for the future.

Buyers – Come out, Come out, Wherever you are…money is so cheap, it’s becoming a buyer’s frenzy.

http://money.cnn.com/2010/08/12/real_estate/mortgage_rates/index.htm