Long-term mortgage rates fell to a new low this week, with a 30-year fixed-rate mortgage averaging 4.71 percent in the week ending Dec. 3, the lowest rate since at least 1971, when Freddie Mac started keeping track.
One year ago, 30-year fixed-rate mortgages averaged 5.53 percent.
Today 15 year fixed-rate mortgages are even lower, averaging 4.27 percent if you are able to afford a higher monthly payment this is a bargain.
"Interest rates for 30-year and 15-year fixed rate mortgages fell for the fifth consecutive week to an all-time record low, while the average rate on a 5-year ARM hovered nearer its record set in the previous week," says Freddie Mac (NYSE: FRE) chief economist Frank Nothaft. "In addition, interest rates on 30-year and 15-year fixed mortgages thus far in 2009 averaged one percentage point below their respective average in 2008."
In Atlanta, home sales rose 3.2 percent in October, NAR reported. Also in Atlanta, home prices were down 10.9 percent year-over-year in October. Low rates continue to contribute to a rebound in the housing market. Existing-home sales rose 10.1 percent in October from September, according to the National Association of Realtors.
Adding to a leg up in the market, the $8,000 first-time-buyer tax credit has been extended until April 30. It has also been expanded to include many buyers who are not buying their first home, with a credit of $6,500, depending on income.
Closings are up and prices are down from a year ago. It is still a buyers market!
Contact our office for more information and professional guidance in your real estate purchases.
by Anita C. Young, Milicki & Associates, Inc.
Milicki & Associates, Inc.
110 Evans Mill Dr. Suite 103
Dallas, GA 30157