Mar 27 2009
Mortgage Rates Hit Record Lows
Mortgage rates through Thursday March 26th were 1% lower than they were a year ago and have well-surpassed the 30 year record low mark. Mortgage rates were averaging 4.85% for a 30 year fixed mortgage yesterday, a testament to the fact that what the Goverment is doing is working for real estate. Going hand-in-hand with the decrease in mortgage rates is the increase in home sales, up 5.5% last month. The decrease in mortgage rates is tied directly to the Federal Reserve and its commitment to pushing money into the Treasury. According to NAR (the National Asssociation of Realtors) “potential homebuyers are taking notice of these historically low mortgage rates. Both new and existing home sales rose 5 percent in February. First-time homebuyers accounted for half of all existing home sales.” Clearly the decrease in mortgage rates, the decline in home values and tax incentives are working at getting people off of the sidelines and into real estate.
