Mortgage rates have fluctuated near the 5% mark in the past few weeks. Although there had been gradual increases since the start of 2011, the rate is still low enough to convince more homebuyers to enter purchase transactions. In North Carolina, house sellers are encouraging reluctant buyers to take advantage of the low rates before they start rising again.
A rise in home sales will help cut down the number of foreclosures in Charlotte, NC, and distressed properties in other key markets of the state. This will help improve housing prices, which will, in turn, help speed up the region's housing market recovery. With rates hovering at the 5% range, sellers are hopeful that buyers will return to the market.
The rate for 30-year fixed loans declined slightly to 5% in the third week of February from the 5.05% rate posted the week before. With rates this low and foreclosed homes for sale in North Carolina offered at almost half their original prices, housing market analysts stated that the current housing environment is definitely a buyer's market.
Meanwhile, mortgage rates for 15-year fixed loans also dropped during the third week, posting an average of 4.27%, slightly lower than the previous week's 4.29%. For adjustable one-year mortgages, the rate was up in the third week to 3.39% from the previous week's 3.35%. According to mortgage industry reports, rates for 30-year loans have never gone below 5% since 1971 up to the end of 2008.
Realtors have been urging buyers to buy non-foreclosed and foreclosed houses now before loan rates start increasing again. The region will greatly benefit from higher sales figures this month as January housing sales data showed varying movements among the different sections of the state. Last month, sales of houses in High Point jumped by 12% compared with January 2010, while the areas of Winston-Salem and Greensboro both posted year-over-year declines.
Realtors are hoping that the low level of mortgage rates will result in more purchase transactions, particularly in the Winston-Salem and Greensboro markets. Winston-Salem posted a 5.1% decline in sales last month compared with year-ago levels, while Greensboro's sales dropped 6% in January 2011 compared with January 2010.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
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