Nashville Area Mortgage Rates Jump Higher

Nashville area mortgage rates for the month of April 2008

Freddie Mac reports a jump in the 30-year fixed mortgage rate to 6.03% during the week ended April 24 from 5.88% the prior week, marking the first time in six weeks that mortgage rates rose above 6%. The 15-year fixed mortgage rate climbed during the same period, edging up to 5.62% from 5.40%. The five-year adjustable mortgage rate increased to 5.68% from 5.48%, while the one-year adjustable rate shot up to 5.28% from 5.10%. Freddie Mac chief economist Frank Nothaft attributes the gains to heightened inflationary concerns.

The Fed does meet later this week to consider dropping bank discount rates from 2.25% to 2%. While that rate cut is expected to happen by Thursday, we do not think that Nashville residential mortgage rates will be affected very much in the short term. Some lenders like Countrywide may see a little relief the following day, but we expect that rates will continue to climb shortly thereafter.

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Nashville Area Mortgage Rates Jump Higher

Nashville area mortgage rates for the month of April 2008

Freddie Mac reports a jump in the 30-year fixed mortgage rate to 6.03% during the week ended April 24 from 5.88% the prior week, marking the first time in six weeks that mortgage rates rose above 6%. The 15-year fixed mortgage rate climbed during the same period, edging up to 5.62% from 5.40%. The five-year adjustable mortgage rate increased to 5.68% from 5.48%, while the one-year adjustable rate shot up to 5.28% from 5.10%. Freddie Mac chief economist Frank Nothaft attributes the gains to heightened inflationary concerns.

The Fed does meet later this week to consider dropping bank discount rates from 2.25% to 2%. While that rate cut is expected to happen by Thursday, we do not think that Nashville residential mortgage rates will be affected very much in the short term. Some lenders like Countrywide may see a little relief the following day, but we expect that rates will continue to climb shortly thereafter.

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Foreclosure Opportunity in the Green Hills Area

Home in Green Hills owned by the bank

These 2 town homes were foreclosed on by the bank a while ago and have been finished by the bank. Each side of this property is a 3 bedroom, 2.5 bathroom, 2 car, 2,709 square foot separate town home that features hardwood floors, granite counters, and even a stacked stone outdoor fireplace. It is a little bit of a mystery to me why these properties did not sell as they are located extremely well and are very attractive floor plans. It is my opinion that they would be phenomenal rentals that would bring $2,350/mo. per side for a total of $4,700/mo of gross income.

Originally these town homes were listed pre-construction for $550,000 each in the summer of 2006. The builder began the properties and by mid 2007 and the price was dropped to $525,000. Since that point, the bank took the property back and finished the remaining work that had to be finished. In our opinion, this property is currently worth a total of $900,000 ($450,000 each side) and should be able to be purchased from the bank for less with a clean offer. All of that being said, I am still surprised to see foreclosures in the Green Hills area, which is known for wealthy homeowners and Nashville mansions.

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Foreclosure Opportunity in the Green Hills Area

Home in Green Hills owned by the bank

These 2 town homes were foreclosed on by the bank a while ago and have been finished by the bank. Each side of this property is a 3 bedroom, 2.5 bathroom, 2 car, 2,709 square foot separate town home that features hardwood floors, granite counters, and even a stacked stone outdoor fireplace. It is a little bit of a mystery to me why these properties did not sell as they are located extremely well and are very attractive floor plans. It is my opinion that they would be phenomenal rentals that would bring $2,350/mo. per side for a total of $4,700/mo of gross income.

Originally these town homes were listed pre-construction for $550,000 each in the summer of 2006. The builder began the properties and by mid 2007 and the price was dropped to $525,000. Since that point, the bank took the property back and finished the remaining work that had to be finished. In our opinion, this property is currently worth a total of $900,000 ($450,000 each side) and should be able to be purchased from the bank for less with a clean offer. All of that being said, I am still surprised to see foreclosures in the Green Hills area, which is known for wealthy homeowners and Nashville mansions.

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Nashville Mortgage Rates Rise Slightly

mortgage rates in Nashville rise slightly this week

30 year fixed interest mortgage rates currently sit at 5.88%, and some industry analysts say they are unlikely to fall any further for the rest of the year. Interest on 30-year fixed loans is only down a quarter of a point, as the credit markets have cut the link between it and yields on 10-year Treasuries; and while skittish investors have moved to Treasuries to trim the yields, mortgage lenders have not eased lending standards.
Nashville mortgage rates are likely to close 2008 at about 6% as investors in bonds focus on rising inflation and drive interest rates higher. Long-term rates will also increase due to the additional supply of Treasuries as Congress borrows to raise money for the growing federal budget deficit. The rise of inflation is a blow to our 5.5% rate prediction by June of this year, we are still not certain that inflation may ease this summer.

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Nashville Mortgage Rates Rise Slightly

mortgage rates in Nashville rise slightly this week

30 year fixed interest mortgage rates currently sit at 5.88%, and some industry analysts say they are unlikely to fall any further for the rest of the year. Interest on 30-year fixed loans is only down a quarter of a point, as the credit markets have cut the link between it and yields on 10-year Treasuries; and while skittish investors have moved to Treasuries to trim the yields, mortgage lenders have not eased lending standards.
Nashville mortgage rates are likely to close 2008 at about 6% as investors in bonds focus on rising inflation and drive interest rates higher. Long-term rates will also increase due to the additional supply of Treasuries as Congress borrows to raise money for the growing federal budget deficit. The rise of inflation is a blow to our 5.5% rate prediction by June of this year, we are still not certain that inflation may ease this summer.

If you liked this post, you may also like:
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The Media Vs. The Real Estate Market

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