Freddie Mac reports a slight decline in the 30-year fixed mortgage rate to 5.67% from 5.68% during the week ended Feb. 7. Interest on 15-year fixed loans also dropped, falling to 5.15% from 5.17%. Over the same period, the five-year adjustable mortgage rate slipped to 5.21% from 5.32%, and the one-year ARM moved down to 5.03% from 5.05%.
Meanwhile, the Mortgage Bankers Association reports a 3-percent jump in home-loan applications to a nearly four-year high last week and a year-over-year gain of 73% as borrowers try to refinance in order to reduce their interest rates. While purchase loan requests shot up 12%, a three-fold increase in refinance applications since December is responsible for the recent gain. According to MBA senior director of economic forecasting Orawin Velz, “We can’t say that this is going to be a refinancing boom or that we have hit bottom in the housing market, but it shows renewed interest.”
Again, these are all positive signs for the national housing market, but Nashville is way ahead of the recovery curve due to unprecedented job growth, population growth, and a re-urbanization of our downtown. Nashville condos sales are up 7% over last year and there appears to be no ceiling in sight.
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