September 26th, 2013 Categories: Credit And Financing, Pensacola Real Estate News
The current Real Estate home buying or building landscape has received another shot in the arm!
Mortgage interest rates have fallen slightly since the Federal Reserve announced last week that it wouldn’t pare back its stimulus program.
The rate for a 30-year, fixed loan fell from 4.5% down to 4.32%, according to a weekly survey from Freddie Mac.
This represents a $21 a month savings, for example, on a $200,000 loan. This is great news for the Real Estate market! Mortgage rates had been moving higher in the past few months, which analysts feared could put the brakes on any recovery going on in the real estate sector of the economy.
“Mortgage rates fell following the Federal Reserve announcement that it will maintain its bond-buying stimulus,” said Frank Nothaft, Freddie’s chief economist. “These low rates should help offset the house price gains seen in the last number of months and keep housing affordable.”
In early May, interest rates had gone as low as 3.35%. However, the Fed’s hints that it would begin to taper its bond purchases caused rates to rise more than a percentage point by late June before leveling off.
“After hearing about rising mortgage rates for months, consumers should welcome the news of a decline,” said Keith Gumbinger, of HSH.com, a mortgage information firm. “The Federal Reserve’s decision to keep its quantitative easing programs running for at least a while longer allowed mortgage and bond markets a chance to relax, at least for a little while.”
Many analysts do, however, expect the Federal Reserve to start to taper later this year, which should push mortgage rates higher.
It would be my pleasure to guide you through the Real Estate home building or buying process before rates possibly increase.
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