A dip in the long-term mortgage rate offered homeowners a refinancing opportunity, according to Freddie Mac, which said average interest on 30-year fixed loans fell to 5.16% from 5.25% last week. Interest on 15-year fixed loans also declined, slipping to 4.81% from 4.92%.
It would be naive of us to predict Nashville home sales to increase due to this mortgage rate slide, but a little voice inside us is still hoping it will help persuade those still on the fence.
This Nashville mortgage rate drop is not helping the commercial real estate market though, vacancy rates continue to rise as cap rates begin to drastically fall. Look for a ‘rubber ball bounce’ in the Nashville retail space market over the next 3 months. After the artificial gain, look for the retail market it to give it all back and then some by the end of the year.