There is so much talk going on this week across the country about the proposed $700 billion government bailout and it can be very confusing about what it all means to us who are buying and selling homes here in the San Ramon Valley.  There is particularly relevant discussion in US News & World Report about how the bailout would affect interest rates.  Here’s my view from the perspective of a real estate broker who has to advise my clients every day and try to give the best advice possible.

The money for this bailout, if it happens, is going to cost the country more than just the $700 billion. My interest is what is may cost my clients who want to buy a home in Danville or San Ramon now or in the near future. Will it affect interest rates, which are now at a historical low? Yes.. is the simple answer. Yes, interest rates will not remain this low which is what I have been telling my clients for awhile now and why right NOW is a great time to buy a home! If interest rates go up… WHEN interest rates go up, home buyers in the Tri Valley will lose the advantage they enjoy right now and the monthly cost of home ownership will go up EVEN IF prices go down further.

They call it a buyer’s market for a reason… because it’s a GREAT time to buy.  If the bailout happens and you buy later, you will be wishing that you had done so sooner when interest rates are sweet & low where they are today.