Is Middle Tennessee's Housing Market Rebounding?
WASHINGTON (AP/WMOT) — Average U.S. rates on fixed mortgages have fallen to fresh record lows for the second straight week. The declines suggest the Federal Reserve's stimulus efforts are having an impact.
Mortgage buyer Freddie Mac says the rate on the 30-year loan dropped to 3.36 percent, the lowest rate since long-term mortgages came into use in the 1950s.
The Fed is spending $40 billion a month to buy mortgage-backed securities. The goal is to lower mortgage rates and help the housing recovery.
Candy Joyce with the Middle Tennessee Association of Realtors says home sales are on the rise in the mid-state, while the time it takes to sell a property is falling.
“We’re down around 75 days to close on a property so that’s a pretty good turnaround time. It has been upwards of 98 or 99, so getting those extra 20 days off there saves people some money and some time.”
Joyce says bankers have tightened the qualifications for getting a loan and you’ll probably have to pay more money down.