Home buyers are seeing some of the best mortgage rates in modern history. The average commitment rate for a 30-year mortgage was at a record low 3.35 percent in December, according to Freddie Mac. This rate was 3.96 percent at the end of 2011.
Gary Thomas, NAR President, expects our stable markets to continue. “Although mortgage interest rates should gradually rise as the year progresses, they’re expected to stay below 4 percent during the first half of the year, meaning qualified buyers generally can stay well within their means.”
“Although tight inventory is limiting home sales in many areas, overall sales are expected to stay on an upward trend. The biggest impact of tight inventory is upward pressure on home prices, but after values fell below replacement construction costs, prices are still affordable in most of the country.”
www.StLouisHomesByGina.com The Gina Koerner Team