Freddie Mac reports a jump in the 30-year fixed mortgage rate to 4.84 percent during the week ended May 7 from 4.78 percent the previous week, which matched the record low. Meanwhile, average interest on 15-year fixed loans climbed to 4.51 percent from 4.48 percent. Low borrowing costs have energized the refinance market, which now accounts for about three-quarters of new home-loan requests. It is these refinance loan requests that are causing the banks to slowly inch their mortgage rates upward. Once the current refinance boom exhausts itself, look for rates to slide back down towards record lows.
Meanwhile, it is interesting to see that more buyers have entered the Nashville real estate market during the month of April than since October 2008. Granted, most are first time buyers and deal seekers, but it is encouraging to see larger numbers of buyers cleaning out our excess inventory. By the way, the Nashville real estate inventory levels have been dropping for several straight months which is a very, very strong sign.