Mortgage rates at historic lows, home buyers wanted
Mortgage rates at historic lows, home buyers wanted (Added: July 29, 2010)
According to the Northeast Tennessee Association of Realtors, 407 homes in the Tri-Cities region sold last month. That was down 2.2-percent compared to May home sales. (more)Applications for home loans nationwide dipped more than four-percent last week, despite mortgage rates at record lows.
Mortgage company Freddie Mac said the average rate for a 30-year fixed loan was 4.54-percent. That is the lowest rate since 1971 -- the year they started keeping track.
According to the Northeast Tennessee Association of Realtors, 407 homes in the Tri-Cities region sold last month. That was down 2.2-percent compared to May home sales, but sale prices increased for the third straight month.
Year-to-date sales in the region improved 15.3-percent over 2009, but lagged behind 2008 by 14.3-percent.
Two real estate brokers in Johnson City had different takes on the housing market Thursday.
"Business is not awesome, but business is good," Blue Ridge Properties' Linda Pardue said.
"We haven't seen interest rates like this since World War II. We should be selling homes by the droves, but we're not," Bill Miles of Your Real Estate Connection said.
But Pardue and Miles agreed on the bottom line. It is a phenomenal time to buy.
Thursday's 30-year fixed mortgage rate was 4.54-percent. One year ago, it was 5.25-percent.
Using the average home price in Johnson City (about $160,000 according to recent estimates), the minimum payment on a 4.54-percent mortgage would be $69.03 cheaper.
After 30 years worth of minimum payments, that mortgage rate would save the home buyer $24,851.08 in accrued interest.
"It gives you an opportunity to get a higher priced home with a more affordable price, simply because the rates are as low as they are," Pardue said.
Homes are more affordable too. It is not unusual to find one priced well below an appraiser's estimate.
So, why aren't more people buying?
"People are just holding on to their money and waiting for better times," Miles said.
He said unemployment is high, consumer confidence is low, and down payments are difficult to muster.
"June 30th, when that tax credit was taken away, [home sales] absolutely went from a perfect to a nothing," Miles said.
Click the play icon above to watch a video version of this report.
Advertisement
Advertisement
Post a Comment (Please Sign In | Register)
- Please avoid offensive, vulgar, or hateful language.
- Respect others.
- Use the "Flag Comment" link when necessary.
- See the Terms and Conditions for details.
Deal of the Day
Advertisement
Most Popular
Advertisement
Advertisement
Results Loading...