I spent the morning canvassing my real estate agent contacts to see how the Fannie/Freddie takeover and the news over the weekend of two major investment banks ceasing to exist affected potential buyers at open houses.
Reviews were somewhat mixed, but the takeaway is still the same: Mortgage rates are not the driving factor for buyers today; it’s still all about price and confidence.
Jane Fairweather is an agent in Bethesda, MD, where home prices are high compared to the national median, but where they’ve come down about 12% since the lackluster spring season. Jane tells me the “Wall Street debacle just frightens people that much more.” She claims the drop in interest rates from around 6.3 percent to around 5.8 percent on the 30-year-fixed makes no difference at all. “People are worried about their jobs and what’s in the pipeline, how many people are going to be affected,” Fairweather says.