Housing industry observers are hopeful that the recent decline in mortgage rates will lead to a recovery in the overall housing market. Freddie Mac reports that interest on 30-year fixed rate loans fell for the fourth straight week, landing at their lowest level in nearly four years.
Economists say mortgage rates averaged 5.48% for the week ended Jan. 24 – down from 5.69% a week ago – because of the latest reports about the economy and because the Federal Reserve made its biggest cut in 20 years to a key interest rate. Freddie Mac also reports that rates on 15-year mortgages declined to 4.95% from 5.21%, rates on five-year adjustable rate mortgages dropped to 5.13% from 5.40%, and rates on one-year ARMs slipped to 4.99% from 5.26%.
The Remarkable Homes Team suspects that the Fed will cut rates again at the next meeting driving rates down for the fifth consecutive week thereby proving the prediction we made just one month ago. If you are an investment real estate buyer, you had better consider pulling the trigger soon before you miss the opportunity of the decade. Nashville commercial real estate may be the best play at this time, but look for the residential sector to bottom out by April or May.
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