Mortgage Interest Rates Hit Record Low
by: Laurie Johnson, May 10, 2012 7:05:00 pm
Mortgage rates are the lowest they've been since the 1950's when long-term loans were first implemented.
Freddie Mac says the rate dropped to 3.83 percent on a 30 year fixed mortgage. Rates for 15 year mortgages are even lower at 3.05 percent.
Stacy London is president of Houston Capital Mortgage and says the lower interest rates have already caused volume to pick up.
"I would say at least 25 to 30 percent from what we were seeing around March. Some of that is seasonal, because the housing season really does start kind of around spring break and it goes until after Labor Day, but rates are certainly driving people into the marketplace."
In fact, so many people are buying houses right now that in many cases new inventory only stays on the market for about
Danny Frank is Chairman-Elect of the Houston Association of Realtors. He says right now Houston is a seller's market.
"You know our inventory levels are at an all-time low. We're at about five months of inventory, which is in all instances a seller's market in the Houston market. So I think this could further drive down the inventory levels which will start bringing the prices of real estate even higher than they already are in Houston."
Both Frank and London say sales may be further boosted by the rental market which is at an all-time high. They say people who are paying high rental rates or who have a hard time finding rental property could, in some cases, get a better deal buying a home.