Wednesday, June 10, 2009

Market Update - June 10

The low mortgage interest rates that everyone considered a given have quickly gone away. The Fed continues to purchase mortgage bonds in an effort to keep mortgage interest rates low but they face a daunting task as the selling pressure continues. Will $700 bln allocated for purchasing bonds be enough to keep the rates low? Probably not.
Oakton is a very attractive town for homebuyers. However, we can see that the condo market is still adjusting to the current market conditions. With the interest rates going up, people expect home prices to come down. Well, that's what we see on the condo market in this area. There are 10 condo units on sale today. From $215k for a 1 bedroom unit to $385 - condo-townhouse. More than half of them have dropped the price if they have been on the market for more than a month...

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