When the Wall Street Journal or Forbes
run mortgage rate stories as their lead items, those of us who keep an eye on
the local real estate market pay close attention. I frequently share
what they say here. But when even the non-financial outlets like USA
TODAY and the cable TV news channels give top billing to real estate market
news, it’s a real attention-grabber.
That’s what happenedlast week. USA TODAY’s online headline focused on the 15-year fixed
mortgage rate, “at a record low 2.61%.” The cable news channels talked about
record low rates, too (although if you hit the ‘pause’ button long enough to
read the TV graphics, you saw that the national average for 30-year loans was
still a shade away from the actual record low).
Never mind that; it’s still surprising that mortgage rates
continue to linger at such tempting lows.
The reason is hardly a secret: the Federal Reserve is
holding rates down to energize the real estate market — a key element of the
overall economy. Yet, with existing home sales notching up in the first quarter
at the briskest pace in four years, you would have thought that mortgage rates
would have been loosened up at least somewhat. And with new home sales doing
their best since 2008…
Of
course, it doesn’t matter what anyone expects: the results of dipping mortgage
rates is just plain good news for everyone in theEvansvillereal
estate market: buyers and sellers alike. Those low mortgage rates act to offset
the rising U.S. house price index. The result for buyers is a more valuable home
without the expected increase in the monthly payment. What more of an inducement
to enter the real estate market could there be?
In short, if you’re considering whether
it’s time to buy (or to sell your current home and trade up without busting the
household budget), last week’s national and local market signs are even clearer than they
have been recently. There are definitely opportunities out there! Why not give
me a call for an up-to-the-moment real estate
market evaluation for your property? You can reach me on my cell phone at
812-499-9234 or by email Rolando@RolandoTrentini.com
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