As per the recent reports, the interest rate on the 30 year fixed rate mortgages, in Atlanta, lowered to 4.83 percent. It previously was at 4.92 percent. Although, the mortgage interest rates went on a gradual increase in the last few months, Atlanta has started to show a completely different picture altogether with this month (August 2013). Furthermore, there was also a decrease in the interest rate in the last week on the loans amounting to $417,000 and above or the 30-year jumbo mortgages. The rates lowered to 4.91 percent from that of 4.99 percent. Additionally, there was a decrease in case of the 15 year fixed rate mortgages too. The interest rates narrowed to 3.84 percent from that of 3.91 percent. In case of the 5/1 adjustable rate mortgages too, the percentage came down to 3.87 from 3.96 percent.
Effect of Atlanta mortgage rates on housing industry
With the yet again falling interest rate, it is believed that the housing industry is going to improve too, at the same time. For example, as the interest rates went on a downward slope, Mayor Kasim Reed declared that he is going to buy the Friendship Baptist Church, at a $19.5 million deal. In fact, this is one of the two churches which will have to be bought for the first time, for a certain reason. As per the Atlanta Journal-Constitution, this church will be used for building a stadium at a preferred location.
So, in all probability the mortgage and the housing market is going to recover soon enough. As the inventory of the homes is still low and as the job market has been on a reparatory path, there is hope that more number of people will be opting for home buying. In the last few years, the interest rates on mortgages hovered on the minimum. Therefore, as the interest rates started to rise, people became wary of the situation. Although, it did not actually slow down the process completely, it acted as a little blockage to the on-going and free development of the market.
The rising mortgage rates are said to have slowed down the process. Furthermore, fewer number of real estate contracts were signed as a result of the slight rise in the interest rates. Still, Ryan Sweet, from Moody’s Analytics believes that “A gradual increase in mortgage rates is manageable for the housing market.” Furthermore, the National Association of Realtors too believe that the sudden increase in the interest rates is supposed to have almost no impact on the sale proceeds of the housing market.
However, now the market watchers believe that it is high time for the homeowners and homebuyers alike, and also the investors, to obtain mortgages. The prospects have improved with the lowering interest rates. As per reports, irrespective of the market situation and the rates, the median price of the existing homes which were sold were said to be up by 12.2 percent in comparison to that of the previous year. This is considered to be the largest gain since that of the year 2005.
So, it may still be a great time for you to buy a home, and especially so in Atlanta. This is because, the rates have lowered by a few points yet again. In addition, you never know when the rates will go on an upward spiral. Therefore, it is better to lock the rates as soon as possible.
This article has been contributed by Sam Stokdale, a financial writer specializing in mortgage. Immersing himself with the financial sector, he has covered topics including real estate investment, mortgage refinancing, lending and borrowing, managing finances and credit advice. He is associated with MortgageFit community; he also shares some useful mortgage tips in the Facebook page of Mortgagefit .
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