Mortgage Rates Edge Below 6%

For the first time since early spring, mortgage rates have fallen below the 6-percent threshold. Freddie Mac reports that 30-year fixed loans came in at an average of 5.93% last week, down from 6.35% a week earlier and 6.31% at the same time last year.

A borrower taking out a $200,000 mortgage at 5.93% would pay $1,190 for monthly principal and interest payments, which is $54 less than the payments on the previous week’s rate. “Consumers see a five in front of mortgages, and they get excited,” says Keith Gumbinger, a vice president at research firm HSH Associates.

It is certainly refreshing to see mortgage rates below 6%, but we wonder if that will be enough to spur home buyers to take the leap during a possible credit market collapse; I’m not that apt to leap in just yet.

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Mortgage Rates Edge Below 6%

For the first time since early spring, mortgage rates have fallen below the 6-percent threshold. Freddie Mac reports that 30-year fixed loans came in at an average of 5.93% last week, down from 6.35% a week earlier and 6.31% at the same time last year.

A borrower taking out a $200,000 mortgage at 5.93% would pay $1,190 for monthly principal and interest payments, which is $54 less than the payments on the previous week’s rate. “Consumers see a five in front of mortgages, and they get excited,” says Keith Gumbinger, a vice president at research firm HSH Associates.

It is certainly refreshing to see mortgage rates below 6%, but we wonder if that will be enough to spur home buyers to take the leap during a possible credit market collapse; I’m not that apt to leap in just yet.

If you liked this post, you may also like:
Mortgage Rates Set Another New Low
5 new rules for Nashville home buyers
The Media Vs. The Real Estate Market
How Much Does It Really Cost to Buy a Home?

National Home Sales are Flat

The level of home sales is expected to show little movement in the months ahead, according to the latest projections. The Pending Home Sales Index, a forward-looking indicator based on contracts signed in July, fell 3.2% to 86.5 from an upwardly revised reading of 89.4 in June, which had risen 5.8% from May. The July index remains 6.8% below July 2007 when it stood at 92.8.

Lawrence Yun, NAR chief economist, said home sales continue to edge up and down. “Pending home sales are oscillating month-to-month, with the long-term trend essentially flat,” he said. “Overly stringent lending criteria imposed by Fannie Mae and Freddie Mac in the past month no doubt held back contract signings.”

This national trend is certainly true here in Nashville where the Remarkable Homes Team has not seem a push in the market since the beginning of the year. However, we have certainly seen a marked rise in the number of homes heading towards the rental and auction markets.

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National Home Sales are Flat

The level of home sales is expected to show little movement in the months ahead, according to the latest projections. The Pending Home Sales Index, a forward-looking indicator based on contracts signed in July, fell 3.2% to 86.5 from an upwardly revised reading of 89.4 in June, which had risen 5.8% from May. The July index remains 6.8% below July 2007 when it stood at 92.8.

Lawrence Yun, NAR chief economist, said home sales continue to edge up and down. “Pending home sales are oscillating month-to-month, with the long-term trend essentially flat,” he said. “Overly stringent lending criteria imposed by Fannie Mae and Freddie Mac in the past month no doubt held back contract signings.”

This national trend is certainly true here in Nashville where the Remarkable Homes Team has not seem a push in the market since the beginning of the year. However, we have certainly seen a marked rise in the number of homes heading towards the rental and auction markets.

If you liked this post, you might also like:
Nashville Housing Inventory Declines
Home Prices Slide in Nashville Area
Home Sales for Nashville, TN – December 2008
Williamson County Homes Inventory

Nashville Mortgage Rates Move Lower

The 30-year fixed mortgage rate declined for the third consecutive week to 6.35% during the week ended September 4 from 6.40% the prior week, according to Freddie Mac. The 15-year fixed mortgage rate slipped to 5.90% from 5.93% over the same period. Meanwhile, the five-year adjustable mortgage rate dropped to 5.97% from 6.03%; and the one-year ARM fell to 5.15% from 5.33%.

This particular mortgage rate slide could continue for a few weeks as the US Government gets a handle on the Freddie and Fannie issue. This could bode extremely well for Nashville real estate investors should these declines continue.

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Nashville Mortgage Rates Move Lower

The 30-year fixed mortgage rate declined for the third consecutive week to 6.35% during the week ended September 4 from 6.40% the prior week, according to Freddie Mac. The 15-year fixed mortgage rate slipped to 5.90% from 5.93% over the same period. Meanwhile, the five-year adjustable mortgage rate dropped to 5.97% from 6.03%; and the one-year ARM fell to 5.15% from 5.33%.

This particular mortgage rate slide could continue for a few weeks as the US Government gets a handle on the Freddie and Fannie issue. This could bode extremely well for Nashville real estate investors should these declines continue.

If you enjoyed this post, you might also enjoy:
Nashville Mortgage Rate Remain Static
Catch Your Breath, Mortgage Rates Change Little
Mortgage Rates Bump Upward
Nashville Mortgage Rates Drop!

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