Vero Coastal Homes 
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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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