Mortgage rates, stable prices create opportunity for buyers
Average mortgage rates have hit a record low, the lowest since the long-term loans began in the 1950's. Our Beth Croughan spoke with area realtors to find out what that means for the Capital Region.
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ALBANY, N.Y. -- "I think it's the perfect storm," said Miguel Berger, the President of Better Homes and Gardens Real Estate Tech Valley.
"It's really the perfect storm," said Leon Levy, an Associate Broker with Prudential Manor Homes.
The same reaction from two Capital Region realtors. Add stable housing prices with historically low interest rates and you've got great buying opportunities.
Mortgage buyer Freddie Mac released the results of a weekly survey and the average interest rate on a 30-year loan is at a record-breaking 3.49 percent.
"Historically, it's been between 6 and 7 percent. Now, we're really low. That I have never seen before in my life," said Berger.
Berger, who has been in the business for almost three decades explained that at these rates compared to those, there could be big savings for a $200,000 mortgage.
"That's a difference of about 400-something dollars a month. Over 30 years that's $145,000 in savings that the customer can save," he said.
This week's rates are down from 3.53 percent the week before. It's a trend that's been emerging over the past 14 weeks.
"The spurt is really, you know, was really brought on by the federal government's their willingness or their wanting to make sure that the economy continues to recover. And it all starts with home ownership, it really does," explained Levy.
He added that because it's an election year, rates are expected to stay low for at least the foreseeable future. And Berger said banks have learned their lending lesson as to not repeat the past.
According to the Greater Capital Association of Realtors, the regional housing market has shown improvement for the first half of the year.