Mortgage Rates Inch Up, Still VERY Low

Nashville real estate mortgage rates

Freddie Mac says the 30-year fixed mortgage rate climbed to 5.12% during the week ended January 22 from 4.96% the prior week, marking the first increase in 11 weeks.

The 15-year fixed mortgage rate climbed as well, reaching 4.8% from 4.65% over the same period. While the one-year adjustable mortgage rate rose to 4.92% from 4.89%, the five-year ARM slipped to 5.24% from 5.25%.

Despite this week’s move higher, industry experts predict that Nashville mortgage rates will hit rock bottom by the end of February to early March 2009. Investors should be keyed to purchase Nashville real estate very soon.

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Mortgage Rates Inch Up, Still VERY Low

Nashville real estate mortgage rates

Freddie Mac says the 30-year fixed mortgage rate climbed to 5.12% during the week ended January 22 from 4.96% the prior week, marking the first increase in 11 weeks.
 
The 15-year fixed mortgage rate climbed as well, reaching 4.8% from 4.65% over the same period. While the one-year adjustable mortgage rate rose to 4.92% from 4.89%, the five-year ARM slipped to 5.24% from 5.25%.
 
Despite this week’s move higher, industry experts predict that Nashville mortgage rates will hit rock bottom by the end of February to early March 2009. Investors should be keyed to purchase Nashville real estate very soon.

Historic US Home Values Chart

historic US home values chart

Don’t let this graph scare you, but let it sink in for just a moment. It is clear that we experienced an unprecedented real estate boom over the past 8 years, but don’t expect an unprecedented depression as a result. We do expect values to drop, but only to the 160-170 basis level.

Why won’t the index drop lower than 160 basis points? Interest rates are incredibly low, so low in fact, that they really cannot drop much lower at all. Also, relative inventory levels are dropping quite quickly across the country…let’s not forget about a possible home builder bail out in the future.

We expect a new plateau to be established followed by a period of slow, steady incline.

– Chart provided by Bill Marsh with the New York Times

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Historic US Home Values Chart

historic US home values chart

Don’t let this graph scare you, but let it sink in for just a moment. It is clear that we experienced an unprecedented real estate boom over the past 8 years, but don’t expect an unprecedented depression as a result. We do expect values to drop, but only to the 130-150 basis level.
 
Why won’t the index drop lower than 130 basis points? Interest rates are incredibly low, so low in fact, that they really cannot drop much lower at all. Also, relative inventory levels are dropping quite quickly across the country…let’s not forget about a possible home builder bail out in the future through incentives or other means.
 
We expect a new plateau to be established followed by a period of slow, steady incline over the next several years.
 
– Chart provided by Bill Marsh with the New York Times

Nashville Mortgage Rates Below 5%

We’ve been telling you now is the time to buy, and we aren’t lying! If your new year’s resolution is to buy a new home in Nashville, we strongly encourage you to start looking now so you can take advantage of these historically low rates.

Not only are rates great, but there are some unique loan programs available that are designed to make a home purchase even easier – but some are only for a certain period of time. For example, if you are a first-time home buyer (defined as someone who has not owned a principal residence during the three-year period prior to the purchase) then you are likely eligible for the $7,500 tax credit. This is essentially an interest free loan that you pay back over the next 15 years. However, you must make this purchase before July 1, 2009. Don’t hesitate to email us with any questions you might have: info@remarkablehomes.com

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Nashville Mortgage Rates Below 5%

We’ve been telling you now is the time to buy, and we aren’t lying! If your new year’s resolution is to buy a new home in Nashville, we strongly encourage you to start looking now so you can take advantage of these historically low rates.

Not only are rates great, but there are some unique loan programs available that are designed to make a home purchase even easier – but some are only for a certain period of time. For example, if you are a first-time home buyer (defined as someone who has not owned a principal residence during the three-year period prior to the purchase) then you are likely eligible for the $8,000 tax credit. This is essentially an interest free loan that you pay back over the next 15 years. However, you must make this purchase before July 1, 2009. Don’t hesitate to email us with any questions you might have: info@remarkablehomes.com

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