Freddie Mac reports that 30-year fixed mortgages averaged 6.11% on Friday, an increase from the week-ago rate of 5.96%. Until this past week, interest on 30-year loans had either been holding steady or declining each week since mid-October. The increase to 6.11% prompted Freddie Mac chief economist Frank Nothaft to remark: “The national housing segment of the economy still has a way to go before bottoming out.”
Rates on 15-year fixed rate mortgages, meanwhile, climbed to 5.78% from 5.65% a week earlier; while five-year adjustable-rate mortgages jumped to 5.89% from 5.75%, and one-year ARMs bumped up to 5.50% from 5.46%. The rate jump was a true surprise as the Fed met earlier this week and lowered prime 0.25%, but Wall street hoped for a full half point drop causing the market the fall over 250 points. The Nashville Remarkable Homes Team predicts that Nashville mortgage rates will fall consistently over the next 3-4 months and the 30-year fixed rate may be as low as 5.75% by early March.
Even with this small mortgage set back, the Nashville real estate market continues to sell more homes than it ever has in history. The downtown condo market has really spurred our market as there are more than 2,000 units delivering in 2008, over 90% of which are already sold! Now is a fantastic time to own real estate in Nashville, our market has appreciated in 2007, condos are flying off the shelf, and you can buy so much for your money!