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Mortgage rates are at historic lows, thanks to our neighbors across the pond. Because of Europe's debt crisis, investors are shifting to the security of US Treasuries, which pushes down their yield and influences a variety of consumer interest rates, including those on mortgages. The current average rate for a 30 year fixed loan is 4.87 percent, reports Bankrate.com. That's the lowest rate in 25 years. Still, the "For Sale" signs peppering Fairfield County lawns don't seem to be going anywhere...yet.
"I definitely think that this development will motivate buyers to purchase," says Norwalk realtor Anne Papastathis. "We are currently experiencing a pretty active market with multiple bid situations on some properties...one of my recent listings is currently in a multiple bid situation with the offers going considerably over asking price." Anne thinks the mortgage rate could drop to 4.5 percent by the summer. "Combined with great home prices, this should stimulate the real estate market tremendously."
As Darien agent Cathy Lawton points out, "Most buyers are focused on what the monthly cost will be, and lower rates make the house they are hoping for that much more affordable."
"I think it will help," agrees Rowayton broker Tammy Langalis. "Now that the first time buyer tax credit is over, the low interest rates will help convince buyers that it is a good time to invest in real estate. Prices are low and there is good inventory in Norwalk and Darien."
Good inventory, for sure. But is there money to spend on it, however low the price? If unemployment dropped along with mortgage rates, we'd really be in business.
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