30-Year Mortgage Rates Hit 4-Year Low!

Housing industry observers are hopeful that the recent decline in mortgage rates will lead to a recovery in the overall housing market. Freddie Mac reports that interest on 30-year fixed rate loans fell for the fourth straight week, landing at their lowest level in nearly four years.

Economists say mortgage rates averaged 5.48% for the week ended Jan. 24 – down from 5.69% a week ago – because of the latest reports about the economy and because the Federal Reserve made its biggest cut in 20 years to a key interest rate. Freddie Mac also reports that rates on 15-year mortgages declined to 4.95% from 5.21%, rates on five-year adjustable rate mortgages dropped to 5.13% from 5.40%, and rates on one-year ARMs slipped to 4.99% from 5.26%.

The Remarkable Homes Team suspects that the Fed will cut rates again at the next meeting driving rates down for the fifth consecutive week thereby proving the prediction we made just one month ago. If you are an investment real estate buyer, you had better consider pulling the trigger soon before you miss the opportunity of the decade. Nashville commercial real estate may be the best play at this time, but look for the residential sector to bottom out by April or May.

If you enjoyed this post, you may also enjoy:
Nashville Mortgage Rates Jump Amid Financial Turmoil
Mortgage Rates Edge Below 6%
Hurricanes and Mortgages…What?!?

30-Year Mortgage Rates Hit 4-Year Low!

Housing industry observers are hopeful that the recent decline in mortgage rates will lead to a recovery in the overall housing market. Freddie Mac reports that interest on 30-year fixed rate loans fell for the fourth straight week, landing at their lowest level in nearly four years.

Economists say mortgage rates averaged 5.48% for the week ended Jan. 24 – down from 5.69% a week ago – because of the latest reports about the economy and because the Federal Reserve made its biggest cut in 20 years to a key interest rate. Freddie Mac also reports that rates on 15-year mortgages declined to 4.95% from 5.21%, rates on five-year adjustable rate mortgages dropped to 5.13% from 5.40%, and rates on one-year ARMs slipped to 4.99% from 5.26%.

The Remarkable Homes Team suspects that the Fed will cut rates again at the next meeting driving rates down for the fifth consecutive week thereby proving the prediction we made just one month ago. If you are an investment real estate buyer, you had better consider pulling the trigger soon before you miss the opportunity of the decade. Nashville commercial real estate may be the best play at this time, but look for the residential sector to bottom out by April or May.

If you enjoyed this post, you may also enjoy:
Nashville Mortgage Rates Jump Amid Financial Turmoil
Mortgage Rates Edge Below 6%
Hurricanes and Mortgages…What?!?

NAR Wants Higher Loan Limits

The National Association of Realtors has called on Congress and the Bush administration to increase the loan limits for Fannie Mae and Freddie Mac from the current ceiling of $417,000 to $625,000. National Association of Realtors President Dick Gaylord noted, “This change will permit more families to enter the housing market by making more mortgages available with lower interest rates. Increased home sales will lower inventories and immediately start stabilizing the housing market and the economy.” Currently, if you mortgage more than $417,000 you will pay on average 1.8% more than a conventional loan.

Our reaction – We think that it’s a shoe in, but the change would certainly help sustain a healthier real estate market in the more expensive cities in the United States. We also wonder what credit scores banks and lenders would require to finance this new $625,000…we would not be surprised to hear 725 or higher.

If you liked this post, you might also enjoy:
Pending Home Sales Holding in Stable Range
HUD Releases New FHA, Conforming Loan Limits – Home Sales Stable
NAR Wants Higher Loan Limits

NAR Wants Higher Loan Limits

The National Association of Realtors has called on Congress and the Bush administration to increase the loan limits for Fannie Mae and Freddie Mac from the current ceiling of $417,000 to $625,000. National Association of Realtors President Dick Gaylord noted, “This change will permit more families to enter the housing market by making more mortgages available with lower interest rates. Increased home sales will lower inventories and immediately start stabilizing the housing market and the economy.” Currently, if you mortgage more than $417,000 you will pay on average 1.8% more than a conventional loan.

Our reaction – We think that it’s a shoe in, but the change would certainly help sustain a healthier real estate market in the more expensive cities in the United States. We also wonder what credit scores banks and lenders would require to finance this new $625,000…we would not be surprised to hear 725 or higher.

If you liked this post, you might also enjoy:
Pending Home Sales Holding in Stable Range
HUD Releases New FHA, Conforming Loan Limits – Home Sales Stable
NAR Wants Higher Loan Limits

30-Year Rates are Lowest Since 2005!

It appears that Christmas has come a month late! Long-term mortgage rates remain in a downward pattern, registering the third week in a row of declining interest. According to Freddie Mac’s numbers, average interest on 30-year fixed loans settled the week at 5.69% – the lowest level since July 2005.

Rates for 15-year fixed mortgages slipped to 5.21% from 5.43% a week ago; while the five-year adjustable-rate average retreated to 5.4% from 5.63%, and interest on one-year ARMs dropped to 5.26% from 5.37%. Observers generally agree that borrowing costs will remain at or near 6 percent for 2008 unless a U.S. recession surfaces – in which case they expect rates to decline further. However, today’s Asian and European black Monday points to the fact that rates will continue to dramatically drop.

Trust the Remarkable Homes Team to give you up to the date mortgage and pricing info for Nashville.

If you enjoyed this post, you might also like:
Mortgage Rates Edge Up, Remain Very Low
Mortgage Rates Continue Historic Fall
Mortgage Rates Remain Flat

30-Year Rates are Lowest Since 2005!

It appears that Christmas has come a month late! Long-term mortgage rates remain in a downward pattern, registering the third week in a row of declining interest. According to Freddie Mac’s numbers, average interest on 30-year fixed loans settled the week at 5.69% – the lowest level since July 2005.

Rates for 15-year fixed mortgages slipped to 5.21% from 5.43% a week ago; while the five-year adjustable-rate average retreated to 5.4% from 5.63%, and interest on one-year ARMs dropped to 5.26% from 5.37%. Observers generally agree that borrowing costs will remain at or near 6 percent for 2008 unless a U.S. recession surfaces – in which case they expect rates to decline further. However, today’s Asian and European black Monday points to the fact that rates will continue to dramatically drop.

Trust the Remarkable Homes Team to give you up to the date mortgage and pricing info for Nashville.

If you enjoyed this post, you might also like:
Mortgage Rates Edge Up, Remain Very Low
Mortgage Rates Continue Historic Fall
Mortgage Rates Remain Flat

Speak Your Mind

*