Interest Rates Getting Better for Home Buyers

Since peaking during the summer interest rates have continued to go down.  The drop in interest rates is being attributed to lower than anticipated inflation rates.  This bodes well for anyone in the market to buy a home especially here in Loudoun County. 

With prices down significantly in the last year, and interest rates at the same level as a year ago, the opportunity to buy more house for the same monthly payments exists, or the same amount of house for less per month.   

The buyers market that has existed in the last 6 months will slowly move to a balanced market during the winter months.  If interest rates stay low and inventories don’t spike up significantly during the spring, there should be some stabilizing in prices during the first quarter of 2007.  The key piece of the puzzle will be how many people are waiting for the spring to go on the market and will they flood the market like this year.