Looking for Atlanta real estate? Well here is some great news! For the first time ever, the average rate on the 30-year fixed mortgage fell below 4 percent for the week ending October 6, to 3.94 percent, according to Freddie Mac. This is following last week’s low of 4.1 percent and dropping, historic lows over the past six weeks.
The average rate on the 15-year fixed loan fell to 3.26 percent, also a record low.
And analysts predict rates could keep falling even further.
These record-setting low rates could be an extraordinary opportunity, a win-win situation among mortgage companies, real estate agents, homebuyers and those looking to refinance, as well as those in real-estate related industries: greater savings for the buyer, the ability to make their buck go further, and eventually, more homes sold. Right?
Unfortunately, as has been the case over the past few years, shrinking mortgage rates doesn’t necessarily mean more homes sold. Buyers have to be in the right situation to take advantage of these low rates, which means high credit scores, large down payments, plenty of equity in their homes, and confidence about the economy. Those who may meet the loan qualifications are simply too nervous about unemployment, pay rates, and increasing their debt load to buy now.
2011 has been one of the worst years in more than a decade for previously occupied home sales, and the Mortgage Bankers Association’s Weekly Application Survey shows a drop in new mortgage and refinancing applications this week.
Nevertheless, dropping mortgage rates means increased buying power and better opportunities for buyers, and many in the industry see it as a positive sign that a rebound is on the horizon.
So what are you seeing? Are you looking for a new home? Does this make you want to buy? Are you optimistic about these new low rates? We’d love to hear from you!