In its “2008 Survey of California Home Buyers,” CAR reports that 69% of all homebuyers are encouraged by price declines to buy a home this year, and 40% of all current homeowners said that lower interest rates are enabling them to sell and buy a better house. And declining interest rates are about to paint an even rosier picture:
Last week the U.S. Treasury said that they will ensure the bonds issued by Fannie Mae and Freddie Mac, a move that should cause interest rates to fall below 6% in the next few weeks.
Indeed, rates quickly fell 1/8% just on the announcement, with FHA Jumbo 30-year fixed dropping to 6.375%. Where loan rates will begin the week of September 14.