In January, 2014, Theodore and Jessica were looking to purchase a house to raise their two year old son. They were tired of living in a small apartment, having aspirations to live in the perfect neighborhood. Being a sports enthusiast, Theodore was looking for a house near a park so he can teach his boy how to play catch. Jessica, a stay at home mom, was looking for a house located in a relatively small town, with stores walking distance away. With these dreams, the young couple went about in search for their new home.
However, the couple seemed to not be in a rush at all when searching for a new home. Although knowing what they wanted for a house and the many options out there that meets their criteria, the couple was very unaggressive in their search. They searched for houses only a couple times per month, and rarely attended open houses or virtual walkthroughs. Because they always vented to their friends and family about how passionate they were about buying a new house, one would wonder what is holding them back from buying a house today! Is there a specific strategy that Theodore and Jessica portraying? Hmmmmmm…..
Flash forward to present day, October 20, 2014! All of sudden, Theodore and Jessica get a jolt of aggression! Friends find them every day searching for houses and taking tours. Friends and family said they visited over twenty houses in one week! WOW! What sparked this changed mindset? What stimulated this out of nowhere aggression?
One thing that has yet to be mentioned is what Theodore does for a living. Theodore is an economics professor at the University of Portland, and has done multiple studies on real estate economics. Having this background, it appears that Theodore and Jessica were playing us all along, being fully aware of the actions they were taking in terms of their house buying decision.
They did it! Found their dream house and locked in their mortgage rate successfully! This rose many eyebrows to Theodore and Jessica’s friends and family. More shockingly, friends and family were amazed when they found out that Theodore and Jessica’s interest rate was MUCH LOWER than theirs. I guess being an economist has its perks huh Theodore?
With interest rates being the lowest it’s been since May of 2013, house buying season is the PRESENT! “Why are rates dropping?” ignorantly asks Theodore’s and Jessica’s friends and family.
Economist Theodore attributed that their many reasons why mortgage interest rates decline. For his particular home, however, he mentioned two specific reasons: stock markets and the Ebola virus.
Wall Street recently experienced a sharp sell-off, making rates drop by about 450 points. This meant that banks were starting to struggle, forcing the interest rates to decrease in an attempt to stay afloat.
In addition, the recent outbreak of the Ebola virus has airline rates declining at an astonishing level, effecting the global economy negatively but making decreasing mortgage interest rates its only silver lighting.
“Now is the time to buy houses!” preached Theodore. “Although the rates are currently low, they will increase again really soon, so take advantage of the services offered by your local mortgage broker today!”