Mortgage Rates Tumbled This Week, Take Action New

Mortgage rates tumbled this week getting closer to historic lows. Freddie Mac reported on Thursday that the average 30-year mortgage rate fell to 4.41% from 4.51% last week while the average 15-year loan rate dropped from 3.56% to 3.45%.

For those hoping to buy as a first or second home one of the Lakewood Ranch homes for sale, this is great news. Mortgage rates had risen a whole percentage over the past year since hitting record lows. The major cause of the increase3 was speculation that the Federal Reserve would cut back on its mortgage buying program, but that has been trimmed back only slightly.

While the increase in mortgage interest rates had slowed home sales which fell for three straight months, home sales in 2013 were nonetheless the best since the housing crisis began.

It is important for prospective home buyers to understand, however, that a single point increase in the interest rate will reduce your buying power by about 11%. That is to say, if you could afford the mortgage payments on a $250,000 home at an interest rate of 4.5%, you will only be able to afford the payment on a home worth about $223,000 if the mortgage interests rate increases to 5.5%, a one percentage point increase.

The Lakewood Ranch village of Greenbrook is an example of one of the nice places to consider buying a home right now. Located in the northeast section of Lakewood Ranch and has neighborhoods set amidst pristine lakes and nature preserves and wildlife habitats, Greenbrook is a community within a community with neighborhoods dedicated to a comfortable Florida lifestyle. Homes in the Banks neighborhood of Greenbrook begin in the $100's while homes in the Ravines neighborhood range from the 200's. Larger homes in the Preserve are priced in the range from the $300's to the high $500's.

So, if you are considering buying a home or condo in the Sarasota real estate market anytime in the next year or two, now is the time to get moving. As the Federal Reserve reduces its mortgage buying program, as it surely will, interest rates will go up and that will decrease your buying power. Call me today at 941-228-2321 to start looking at homes in Lakewood Ranch that may fit your needs and desires.