Across the board, fixed mortgage rates have fallen yet again, this time nearing record lows: brilliant news for those who can afford to purchase a home, for those first time home-buyers entering the market, and even for those looking to refinance existing home loans.
According to Freddie Mac, in the past year the record-low for a 30-year fixed mortgage was at 4.17 percent in November 2010, and since then has fluctuated, most recently dropping from 4.39 to 4.32 percent in August 2011. During that same time-frame the very popular 15-year fixed mortgage also fell from 3.54 percent to 3.50 percent. The average rate on a 5-year adjustable rate mortgage fell to 3.13 percent the lowest since January of 2005. While the average rate on a one-year adjustable-rate loan dropped to 2.89 from 3.02, beating a record low which dates back to 1984.
Considering that rates on the 30-year fixed loan were up above 8 percent when going as far back as 2000, this continuance of low interest rates should in theory help boost a lagging real estate market by not only increasing home sales, but in the refinancing sector. In fact many lenders have found that their refinancing departments have been booming, at their highest level of the year to date.
Lenders have implemented their own measures to aid in lending appropriately based on what borrowers can afford, often insisting on higher credit scores or possibly larger down-payments. While this may appear to hinder some borrowers from getting the loans they desire, it actually safeguards those who cannot afford to purchase a home from doing so and then ending that financial transaction in a short sale or foreclosure within a few short years.
This continually stabilizing real estate market has a lot to gain from mortgage rates which continue to remain low, and since that is not likely to change any time soon, the future of the market remains bright.
A specialist in Columbus GA and surrounding areas, Tiffiney Graham has just the right amount of local familiarity and expertise necessary in today’s Columbus real estate market conditions. Get the professional advice and knowledge on Columbus homes that only specially trained Columbus Georgia REALTORs® can provide.