Mortgage rates dropped this week to tie the lowest on record: the 30-year fixed loan down to 3.49% with help from the Federal Reserve. Record low rates are giving homebuyers and owners the opportunity to save thousands of dollars on mortgages. Those who qualify for loans are met with tight lending standards and lengthier closing times.
Just last week, the Federal Reserve announced that it would be purchasing more than $40 billion in mortgage-backed securities every month in an effort to spark job growth and lower borrowing costs for Americans. A week ago, the 30-year fixed loan held steady at 3.55%. After more than four years of decline, the national real estate market seems to be recovering, with record high sales, and foreclosures dropping more than 60% nationwide.
In August, sales of existing homes rose to a 2 year high according to the National Association of Realtors. Last week’s consumer sentiment report was also the best in five years, suggesting that consumers are more positive about the state of the economy than they have been in a while.
Despite the volatility of foreign issues such as Europe and Asia, as well as the large amounts of economic data that will come out next week, I think rates will remain “range-bound,” with no rate spikes in the near future. Historically low mortgage rates make this the perfect time to buy Sonoma and Napa Real Estate. Contact Ginger Martin