Mortgage Rates Hit NEW Record Low

  The 30-year fixed mortgage rate fell this past week to a new record low of 4.09 percent, which is down from 4.12 percent a week earlier and 4.37 percent a y...

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Mortgage Rates Hit NEW Record Low

Posted by Gary Ashton: RE/MAX ADMIN on Tuesday, September 20th, 2011 at 2:05am.

 

The 30-year fixed mortgage rate fell this past week to a new record low of 4.09 percent, which is down from 4.12 percent a week earlier and 4.37 percent a year earlier, reports Freddie Mac; the company's statistics date back to 1971.

Homeowners who refinance would be able to save almost $1,715 a year in interest payments on a $200,000 loan, calculates Freddie Mac chief economist Frank Nothaft.
 
The 15-year fixed rate also fell to a new low, declining to 3.30 percent from 3.33 percent the previous week; Freddie Mac's data for those loans go back to 1991.
 
[SOURCES: Freddie Mac; Information, Inc.]
 

Amazing rates really and these should really help people who are considering buying a home get off the fence and take a positive step towards actually buying a home.

The Nashville real estate market has definitely seen some movement in the listings that are recognized to be the most desirable. usually this means the homes are priced right, they have no deferred maintenance and the home is decorated in such a way that is hows very well and not personalized to such a degree that it becomes an objection.

When the home buyer has such a choice of available homes with similar profiles in roughly the same areas then its clear that the qualified home buyer will start to become very picky knowing that they can simply move on to the next home if the feel that the home is over priced or has too much work required.

In some ways, just like buying an engagement ring, the home owners can become very quickly educated in what represents a well priced home in the price range they are looking in.

If you imagine the buyers are really having an intense course in home values it will make sense. Over a period of a few days or weeks they actually get to experience homes for sale in their chosen price range and quickly start to establish value perceptions.

Their realtor will obviously be able to show them the comparative market analysis for homes that seem to be over priced, and under priced, and help adjust the values for the buyers.

However, its the buyer that sets the market price, in association with a willing seller and/or the bank and it shouldn't be underestimated that sometimes the reason for a moving market, in terms of price, is because the buyers are absorbing all the economic indicator data and making their own judgement values which may be in line with the perceptions of a motivated seller who is willing to accept a low ball offer!

 

Gary Ashton

The Ashton Real Estate Group of RE/MAX Advantage

The #1 Real Estate Team in Tennessee and #4 RE/MAX team in the world!

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