It's Time to Buy or Refi


Terry Savage Image Terry Savage Author, The Savage Truth on Money

We're reaching a once-in-a-lifetime opportunity in the housing market for those who can take advantage of absurdly low mortgage rates, writes personal finance expert Terry Savage.

He (or she) who hesitates is lost! It’s an old saying, and right now it applies to the housing market.

Yes, the economic headlines are still gloomy, many are unemployed, and foreclosures are actually rising. But paradoxically, those obvious facts are creating one of the best home buying opportunities in history.

Not only have prices fallen by 30% or more in many locations, mortgage rates last week hit 60-year lows! The average rate on a 30-year fixed-rate mortgage fell below 3.5% for the first time since the 1950s. The average rate on a 15-year fixed-rate mortgage is now 2.8%.

Combine low rates and low prices and you have an incredible opportunity. But for most people, that opportunity will only be obvious in hindsight. We are all conditioned to remember only the recent past.

And, for housing, that recent past is scary. Gone are the stories of profits made on the sale of a home. They have been replaced with eviction notices and lost equity.

Just as no tree grows to the sky, no market continues in one direction forever. But only a few people have the discipline to step back, gain perspective, and take the risk of going against the obvious current trend.

The American Dream
Owning your own home is still a centerpiece of the American dream.

It was the dream of the pioneers who took wagon trains west, seeking their own land. It was the dream for the immigrants who arrived on our shores.