Nashville mortgage rates approach record lows! Freddie Mac reports that the average interest on a 30-year fixed mortgage fell to 4.94 percent during the week ending October 1st, the first time since May that the firm’s survey has slipped below 5 percent. The rate on 15-year fixed loans, meanwhile, dropped to an all-time low of 4.36 percent. The Federal Reserve’s effort to purchase $1.2 trillion in mortgage bonds is lowering rates, according to Freddie Mac.
On the questionable news front, both foreclosures and delinquencies are still rising, and loan modifications are slowing down as many federal modification programs expire (not that they were even close to being successful while they existed).
I personally don’t see rising foreclosures being a problem for mortgage rates. In fact, seeing banks clear their inventory is freeing vital capital that will allow them to make more new loans to new buyers. If you are a buyer with good credit, this news is actually very good for you. Mortgage and home loan rates in the Nashville area are almost lower than they have even been AND you might be able to find a heck of a deal in the distressed real estate market = Win-Win!