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30-year Mortgage Rates Rise After Record Run at Historic
Lows
Buy Now to Avoid Paying More
Vero Beach Florida - After month long run at record low levels,
rates on 30 year fixed rate mortgages rose above 5 percent last
week. Rates started their decline after the Federal Reserve
announced last November their plan to buy $500 million in
mortgage backed securities. It was hoped this would encourage
banks to lend more money and help the troubled housing
industry.
The majority of new mortgage activity came from home owners
anxious to take advantage of rates just under 5% for a 30 year
fixed rate. Prices seem to stabilizing especially in desirable
areas as the available supply diminishes.
The pending expiration of the first time home buyers tax credit
of $8,000 has been a factor in the entry level market. Well
located homes in good condition, especially newer construction,
are beginning to sell. Prospective home buyers with steady
employment, a down payment and decent credit are getting
loans.
Investors are also buying again, helping to deplete the
overstock of Vero Beach Fl Foreclosures and Short Sales. When
income from a potential rental home equals holding costs,
Investors are ready to act on the opportunity for future
appreciation.
by Alfred Koenig - Dec 10, 2009
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