Low interest rates mean it’s a good time to buy a home

In the wake of the first time home buyer tax credit, home sales may be down this spring.  But so are interest rates, putting one local couple on both sides of the housing market.

Teri and Mike Lindquist have found themselves in a time of transition that Mike calls a little nerve-racking.  Four of their five children are grown, so they need to downside.  They've found their dream home and all but signed on the dotted line.  Now, if they could just sell their old one.

Mike says, “the buying is the fun part, but the selling is the hard part because things are slow.”

Sales of new homes fell last month to the lowest level on record.  Economists blame the slump on the expiration of the home buyer tax credit this spring.

Realtor Miranda Watson says here in Nebraska, things are steady.  Open housed and web site activity are up.  More importantly, interest rates are low; at about 4.5% on 30-year fixed loans and 3.75% for a 15-year loan.

Watson says, “not since Eisenhower was playing golf on the lawn of the White House have interest rates been this low.  This is history in the making.”

Those history-making rates are helping the Lindquists the get the most home for their money.  Teri says, “payments on our new home, which has a higher value, will actually be less than what we're paying now.  It's not just a one-time stimulus  it's forever and that will save us money.”