Tampa home buyers and sellers are all talking about the Treasury Department’s proposal to reduce mortgage rates to 4.5 percent, roughly 1 percentage point lower than current rates, in an attempt to revive the housing market.
The Milstein/Hubbard plan is designed to entice up to 1.5 million buyers to enter the housing market and reduce the surplus of available homes. The proposal would apply only to homebuyers, not those looking to refinance or avoid foreclosure. Under the plan, Treasury would purchase the 4.5% loans as mortgage-backed securities from Fannie Mae and Freddie Mac. It is not certain if, when, or how this proposal will be acted upon. As the recent $700 billion TARP rescue plan demonstrated, government programs often change significantly.
While the Treasury’s attempt to stimulate sounds appealing on the surface, uncertainty about the timing and details of the plan could serve to keep Tampa home buyers on the fence and aggravate the problem. My advice? Don’t wait. Act today if you find the right home.
The Tampa real estate market is recovering. We have seen the supply of unsold homes plummet from 24 months to 15 months. Interest rates are near historical lows even without a government intervention. The $7500 tax credit is in place. Sellers are willing to negotiate. The selection of builder, foreclosure and pre-owned homes is amazing. We have seen incredible bargains. First-time home buyers are back in the market. If you are considering buying investment property, the numbers are starting to make sense again as rents are rising.
Looking for your dream home in Tampa? Searching for bargains and foreclosures in Tampa? Wondering about schools and neighborhoods? Contact Team Bohannon today.
We can help find the perfect home in any Tampa neighborhood, including: New Tampa, Wesley Chapel, Westchase, Lutz, Carrollwood, South Tampa, Odessa, Lithia, Apollo Beach, Riverview, South Shore, Brandon, Waterchase, Cheval, Avila, FishHawk Ranch,Tampa Palms, Grand Hampton, Hunters Green, Arbor Greene, MiraBay, Hyde Park, Culbreath Isles, Palma Ceia, Davis Island, Beach Park, and Sunset Park. We know all of Tampa’s master planned communities, the luxury communities, the golf communities, and condo communities and the beaches!
- By Dale Bohannon
