Rate On 30-Year Mortgage Falls To Record Low

On the heels of the congress debacle, which kept a decisive action in regards to raising the debt ceiling until the last possible moment, the United States lost its stellar AAA credit rating. The economy continues to flounder and record setting low interest rates are failing to stir the home market back to life. As a matter of fact, last Friday rates on a 30-year mortgage fell to its lowest level since 1971!

Rates moved from 4.32% during the prior week to a new low of 4.15% last Thursday. Rates have not been this low since the 1950's! Although rates have remained below 5% for all but 2 weeks of the past year, yet nationwide sales and prices remain lackluster.

One thing holding borrowers back from taking advantage of these exceptional rates is the difficulty in securing a new loan. Banks are requiring higher credit scores and larger down payments. Those who do qualify have flocked to refinance existing loans and refinanced loans are currently representing over 70% of new mortgages.

In the Tampa bay Beach area, we continue to see "Cash is King", with over 62% of our current sales as cash transactions. To see current rates on our website, Click Here.

July Market Statistics Are In - Tampa Bay Upswing!

Click On Chart To Enlarge

July 2011 Market Statistics for Pinellas County in Tampa Bay are in and now posted on our website. The chart at left tracks the Absorption Rate by month as it compares to 2008, 2009 and 2010. In the event you are not aware, this is determined by dividing the total number of units sold during the month by the number of listing in the MLS (Multiple Listing Service).

Take a look at the chart comparisons for inventory versus sales and it becomes very clear what is happening in our area. Inventory of both single family homes and condos are at a level not seen since 2005! Yet sales are accelerating. Even in the midst of national trends, there are location-specific areas on the rise. The waterfront Tampa Bay area with its beautiful beaches, temperate climate, and proximity to an international airport and seaport... plus location for 9 spring training National Baseball Leagues continues to draw new buyers, both foreign and domestic!

It is interesting to track the sales and listings by zip codes to uncover the desire and magic of owning waterfront property... and the possibility for dramatically reduced prices! Be prepared. Prices are starting to climb and some deals that hit the market are getting multiple offers on them within the first week.

The PURTEE Team is extremely knowledgeable about the Florida real estate market, and in particular the barrier islands of Tampa Bay. Contact us to learn how you can find your own piece of paradise at an affordable price today!

Debt Ceiling Raised But Impact On Mortgage Rates?

It has been quite the roller coaster ride to see how Washington has handled finding resolution to the pending Debt Ceiling Crisis. Although concessions were made on both sides, the government finally signed off on the agreement to slash $2.1 trillion in spending and raise the $14.29 trillion debt ceiling.

Yesterday, stocks tumbled over 2% even with the agreement and the financial environment appears to be far from stable. What will that mean to interest rates and the real estate market in the near future? What will make a huge difference is whether our debt worthiness is downgraded from our AAA status.

The immediate result from a downgraded rating would be an increase in consumer rates as a direct result of the government being forced to pay higher rates to bond investors. Mortgage rates are at record lows. The average rate for a 30-year fixed mortgage at the end of last week was 4.55%. If bonds issued by Fannie Mae and Freddy Mac lose their AAA status as a result of a downgraded credit rating, mortgage rates will rise as a result. Many investment funds are only allowed to invest in AAA-rated bonds... the lack of these investors would have a fairly immediate reaction to interest rates in the short term.

If you are considering a home purchase in the near future, it may very well be the time to lock in a rate now while these rates are so low. The PURTEE Team is here to help in the Tampa Bay area!