Interest Rates Down, Metro Phoenix Existing Home Sales Up
As we move into May, mortgage rates are slowly dropping. The average rate for a 30-year fixed-rate mortgage has lowered to 6.01 percent, with fees increasing to an average of 1.26 points, according to the Mortgage Bankers Association. Last year at this time, the average mortgage rate was 6.16 percent. The average rate for the 15-year fixed-rate loan is now 5.53 percent with fees increasing to 1.24 points.
The lower rates will undoubtedly nudge some prospective home buyers off the fence and into an action mode. Even a small decrease in interest rates lowers monthly payments significantly and increases a buyer's capability to qualify for mortgage financing. More positive news was delivered by the Federal Reserve on April 30 when they announced another quarter-point reduction in the Fed interest rate (now down to 2 percent). This will add pressure for further reductions in mortgage rates.
The metro Phoenix real estate market is seeing an uptrend in existing home sales. Inventory levels have dropped from a 19.6 month supply of homes for sale in January to 15.5 months in February to 13.14 months in March of 2008. The biggest increase in sales are homes priced between $200,000 and $499,999.
If you've been thinking about buying, contact me...I'd be happy to help!
Joe
Joe Janus - Phoenix Real Estate