Finally, a stimulus plan the average home owner can use! Recent actions taken by the Federal Reserve to raise the supply of credit and push down the home mortgage lending rates appear to be working. Last week home mortgage interest rates at Rochester area banks fluctuated between 4.375 and 4.75%. The drop in interest rates drove new buyers into the market and existing home owners to their loan officers.
One mortgage consultant I spoke with indicated she had locked interest rates for 22 people in 3 days. Homeowners with good credit are finally able to refinance at these lower interest rates even if they do not have 20% equity in their home. A homeowner I spoke with recently had just refinanced though they had just purchased their home 6 months ago. The refinance will save them about $400.00 per month. Now that is a significant savings for a credit worthy homeowner!
In Rochester, home buyers took advantage of the low interest rates. In the past seven days, 32 homes have accepted offers with more in negotiations. Almost a third of the homes pending sold within their first 30 days on the market. Low interest rates coupled with low home prices along with a supply of credit has finally shaken the housing market loose a bit.
If you are thinking of selling your home, act now and take advantage of the new buyer activity in the market. If you are thinking of buying, act now to take advantage of the low interest rates and home prices. In our lifetime, here has never been a better time for buyers to buy a home.
Buying or selling, contact us at DavidAndLoisMarris@EdinaRealty.com. Visit www.DavidAndLoisMarris.com to search for more buying and selling news.
REALTORs David and Lois Marris are top producing real estate agents at Edina Realty, the number one brokerage in Minnesota.
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