If you needed a good reason to begin your hunt for your dream home, consider this; mortgage rates hit their lowest point in more than eight months this week. With a falling stock market and concerns over another recession, yields on 10-year Treasury notes began to decline. The lower mortgage rates soon followed, offering Atlanta real estate shoppers further incentive to find the home they want to purchase as quickly as possible to take full advantage of the rock-bottom rates.
What the Numbers Show:
The average rate for a 30-year fixed loan fell to 4.39 percent from 4.55 percent, according to data from Freddie Mac. The market has not seen this low of a rate since November of last year, when the 30-year mortgage also high 4.39 percent. The rates actually went even lower during that month, hitting 4.17 percent for a 30-year fixed at one point before fluctuating upward once again. The 15-year fixed-rate mortgage loan dropped to 3.54 percent from 3.66 percent. Five-year adjustable rate mortgages weighed in with a starting rate of just 3.18 percent.
Lower mortgage rates can be attributed to a number of economic factors, including the stock market drop this week and a slower growth rate than expected for the gross domestic product. Consumer spending also dropped unexpectedly, as did growth in manufacturing. Keith Gumbinger, vice president of HSH Associates, a loan data firm in New Jersey, told Bloomberg, “Two of the most important factors that influence mortgage rates are economic growth and inflation. The numbers show an economy that is stumbling far worse than expected. We’re pretty close to stall speed.”
No one knows for sure just how long these low rates will last, so now might be the perfect time to start shopping for Atlanta real estate in earnest. When you combine the record-low mortgage rates with low home prices and a wealth of inventory available, there is no telling how much house you can purchase for your dollar. The market is truly ripe for buyers of all kinds, whether you are looking for a primary residence for your family or a piece of investment property for the future.
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