Benchmark  interest rates on 30-year, fixed-rate mortgage dipped to a 38-year low recently. Consumers have a growing up-side to purchasing or refinancing in this current “down” market.

Other considerations:

Recently the average rate on a 30-year loan was 4.71% with an average 0.7 point, the lowest rate since Freddie Mac began its weekly tracking of long-term interest rates in 1971. A point is equal to 1% of the loan amount, which a buyer pays as a lump sum at closing. While not a dramatic change, this dip is likely to get people wondering whether it’s time to actually go out and purchase the home that they’ve wanted, but were too unsure as to actually purchase. Nashville Real Estate Search Online can recommend qualified lenders to quote you up to the minute rates, as they change, in some cases, daily.

Beginning in January, 2009, the Federal Reserve has been purchasing mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae in an effort to stabilize the housing market by making homes more affordable for consumers. The Federal Reserve Bank of New York, which is managing the program, plans on purchasing $1.25 trillion of securities. These purchases have kept mortgage rates historically low. Will rates stay low?
It’s hard to predict but, but money can’t and won’t stay this low that much longer. The banking industry’s good health is in a large way determined when mortgages are a profitable investment. Increased sales activity most likely will be perceived as increased buyer confidence signaling a safe window in which rates may be hiked upward. In September 2009, the Fed said it would gradually wind down the purchase program, ending it by March 30, 2010. That has some in the mortgage lending industry worried. In a recently published mortgage survey, more than 60% of Bankrate.com’s panel of experts predicted that rates will move higher over the next 30 to 45 days. How much higher is anyone’s guess. Last year at this time, the average 30-year, fixed-rate mortgage was 5.53%.

Nashville Real Estate Search Online Recommends A Few more Things to Considering Before Purchasing

20% down payment shows banks’ that you mean business. Statistically far fewer homeowners enter foreclosure who initially financed with a sizable down payment. Lending institutions reward this buyer demographic with lower interest rates. You’ll also avoid the monthly cost of mortgage insurance.
Spend time shopping for low interest rates. Treat your loan like a medical condition. Three opinions on a purchase of this size is a good idea.
Compare closing fees from one lender to another. One lender may offer you a lower initial rate, only to recoup it with an array of fees attached to loan initiation.

Are You Considering Purchasing a New Home?

Home buyers certainly have a lot of positives going their way right now—low interest rates, large inventories, homes priced for quick sale, and an extended and expanded federal tax credit that will expire in the spring. Let Nashville Real Estate Search Online recommend a qualified Realtor to make a professional assessment of your individual Nashville residential Real Estate Market.