Guidant Financial Group Blog

Fixed-rates for mortgages are the lowest that they have been in several decades, according to an article on MSNBC.com. No one can be certain of how long these low rates will last, how much further they might fall and how much they will rise after reaching the bottom. It's also not a given that aspiring homeowners will actually be able to get financing, especially if they have less-than-perfect credit scores.

One thing is slightly clearer: These rates are more incentive for homebuyers to take advantage of the low prices already being offered in this buyers' market. This could raise demand significantly, and as demand rises and inventory diminishes, home values will also be on the rise.

For property investors, these low rates are good news for the longterm. It will still be a while before most markets—especially truly glutted markets—see prices rebound very much, and financing is well out of reach for anyone who has experienced foreclosure. Many people still need to rent at present, which guarantees that many investment properties will generate cashflow. Individuals who are considering investing in property can find great deals on homes and may see prices appreciating sooner than later if these lower mortgage rates do compel more people to gradually start buying.

Even with these low-rates, investors who have sufficient retirement funds to buy property may want to consider using a self-directed IRA as a debt-free means of financing. After all, no interest is still better than low-interest if the property is to be an investment. There are housing markets that seem to already be at bottom, and today's low mortgage rates may give these markets the final push toward appreciating home values in the coming year.