Home Buyers in Orlando Gear Up as Rates of Fixed Mortgages Fall Further
The spring buying season 2014 started off on a good note and it seems to only be getting better. Rates of fixed mortgages were on a downward spiral since the first week of April. The week beginning April 14 marked the second time when rate of fixed mortgages fell to their lowest levels since February.
As noted by Freddie Mac, the government-sponsored mortgage buyer, the average rate of interest on standard 30-year home loans dropped to 4.27 percent in the week beginning April 14. The week before (April 7-13), fixed mortgage rates stood at 4.34 percent. The 4.34 percent – rate was again, 0.7 percent below the rate of fixed mortgages in the week beginning March 31. In the beginning of the year, these rates stood fairly high at 4.5 percent.
This week’s decline marked the second consecutive week when fixed-mortgage rates were lowest since February and Orlando realtorssay prospective buyers are getting more enthusiastic about the spring buying season.
Will the Drop in Fixed Mortgages Sustain Itself in the Coming Weeks?
Most probably yes. According to 56 percent of the market analysts interviewed by the website Bankrate.com, the rates are going to hold steady in the coming weeks. They say the rates of interest will continue to be low and and remain stable over the next couple of weeks. They did not predict a rise in mortgage rates.
Realtors note that concerns of a weak market – one that wouldn’t be able to support a dynamic increase in prices of residential real estate – to be one of the primary reasons rates began spiraling downwards from January 2014.
A good time to buy homes?
According to the Orlando real estate agents it is. According to the most recent report from the US Department of Housing and Urban Development, March was marked by an increase in new residential construction. The report, released April 16, revealed that housing starts in March increased by 2.8 percent, compared to the February. The month also saw a reduction in permits for residential buildings, as compared to the number of permits issued in February (2.4 percent decline). The number of permits were however, 11.2 percent higher than the number in March 2013.
Increasing inventory and reducing rates of mortgages typically result in increased buyer activity. The Orlando real estate industry has seen its fair share of residential starts and realtors say more prospective buyers are inquiring about the rentals and purchases in upcoming properties.