North Georgia Mountains, Blue Ridge Real Estate, Mortgage Rates, Buying Power, Move 2 North Georgia
Inman news reporting mortgage rates continued to climb at year-end. The final week of 2010 had 30 year fixed rate loans at their highest level since May according to Freddie Mac. Thirty year fixed rates averaged 4.86% in the last week of 2010, up from 4.81% the week before. But still below 5.14% which was the rate recorded at the same time in 2009. Rates hit a record low of 4.19% in mid-October and averaged 4.7% for the 2010 as a whole.
Fifteen year fixed rates averaged 4.2%, up from 4.15 in same time frame mentioned above, but still down from 4.54% a year ago.
As I've recently written, rising interest rates reduce buying power. Many real estate markets throughout the nation seem to be turning the corner and on the upswing and so it goes with rates. Still lots of inventory and low prices but you "gotta" keep an eye on those darn rates! A 1/2% increase in rates equals a 5% decrease in buying power.
Thinking about buying but still not sure, maybe investing but iffy, asking yourself, "how much can I afford"?, or "is it better to rent vs. buy?" I can help you run the numbers and assist you with lenders who are ready to make loans and pre-qualify you.