Historically-low rates & record-high housing affordability ring in the New Year
Mortgage rates are expected to remain very low, at least through mid-2012
Thirty-year fixed-rate conforming mortgages have hovered around 4.0 percent (or lower) throughout the last quarter of 2011 thanks in large part to the Federal Reserves Maturity Extension Program and its stated intent to push and keep long-term rates low. The Program is expected to last until mid-2012. This should keep fixed rates for 15-year through 30-year product relatively low during the first half of the year.
Low rates and home prices push housing affordability to record highs
The National Housing Affordability Index reached another all-time record high in October 2011 for the sixth time in 2011, according to the National Association of Realtors®. Monthly principal and mortgage interest payments accounted for a mere 12.6 percent of median family incomes that month. U.S. house-price indexes are expected to move lower before bottoming out in 2012. This should help keep the affordability index high.
Website by Erika Nigh
Your real estate specialist serving the space coast over 30 years in Brevard County. Prime areas include Melbourne, Suntree, Viera, West Melbourne, Melbourne Beach, Satellite Beach, Indian Harbour Beach, Indialantic, Palm Bay, Malabar and Grant-Valkaria.
