Real Estate: Borrowers rush in as Feds keep mortgage rates low
Real Estate Mortgage Rates
The home mortgage market, propped up by more than $1 trillion in government money, is flashing a strong “buy” sign to house hunters.
Fed last week committed to keeping the rates low as they do not completely see that mortgage lending blockage has been cleared. Feds continue to be the biggest lenders currently and seems will continue doing it for a while.
Borrowers are taking notice. Loan applications jumped 13% last week and are up 50% from late June, the bankers group said.
Several factors are fueling the trend, including growing confidence that the economy is recovering, an emerging consensus that housing prices are at or near a bottom, and the federal government’s push to keep mortgage rates low.
Because of the low interest rates, many first time buyers are taking advantage and purchasing real estate. Similarly investors are putting 20% to 25% down and are purchasing properties to either flip or hold them as residential rental properties to generate income. Many current homeowners are putting more money in their pockets by lowering their payments.
Will rates stay low and for how long? Check this article out.
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