Real Estate

Why is the Real Estate Market Losing Sales With Low Mortgage Rates?

Mon Apr 28, 2008 2:21 pm
Comments: 0 Views: 82

The real estate market is in the middle of a mortgage meltdown, with low interest rates. With fewer lenders and fewer mortgage products and tougher qualification standards one might reasonably expect nervous investors to want higher interest rates to compensate for more risk.

Instead we have just the opposite:

Freddie Mac recently reported that interest levels for fixed rate financing dropped to 5.88%. This rate is not much higher than 2003 levels when rates were 5.21%.

What should matter to buyers is that rates are low relative to both recent levels and historic standards.

Buyers need to consult with their lender to determine if this is the right time for them to make a home purchase.

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