Orlando Mortgage Rates Trends and Analysis
December 6, 2010 by Mike Calvert · Leave a Comment
Signs are pointing up for the real estate market. This is due, in large part, to declining mortgage rates across the country. Earlier this month the Fed presented a game plan that would invest $600 billion in Treasury bonds, a portion of which goes towards keeping mortgage rates low.
If you are looking to buy real estate in the Central Florida area, this can mean significant savings in a time when it is needed most. Analysis of the Orlando real estate market reveals that many are taking advantage of these new low mortgage rates, with a recent boost in home sales. Even better for homebuyers, sale prices remain very competitive on a local level, which can result in great deals.
According to NAR, the national median sales price for existing single-family residences in September was $172,600. Statewide, homes sales are up 7 percent in October compared to last year, with a total of 143,398 single-family residences being sold. Florida REALTORS® also reported a 33 percent gain in condo sales for the year in comparison to last year, with 59,966 units being sold so far in 2010. With prices decreasing and sales showing an overall increase, Florida shows a positive momentum for real estate despite other economic uncertainties.
In October, the interest rate for a 30-year fixed-rate mortgage averaged at 4.28 percent. Compared to last year’s October interest rate of 4.95, this is a significantly lower rate reported by Freddie Mac. These rates are predicted to rise, however, so timing is of the essence to take advantage of these new low rates.
New homebuyers should take note that lenders can still be pretty discerning when it comes to approvals, so taking the following 3 steps may increase your chances of a lower interest rate and loan approval:
• Repair any credit mishaps and raise your score. There are many ways to improve your credit. The best way is to reduce your debt.
• Save. Save. Save. The more money you are able to put down on a home, the more attractive you are to lenders since you’re less of a risk.
• Consider real estate appraisal values. Banks are not willing to lend more than a home’s value, so make sure the purchase price is at or below the home’s appraised market value.
Mid Florida Investment Properties, LLC owner Mike Calvert has been buying and selling real estate in Central Florida for over 18 years. Get a seasoned investor as your partner for a fraction of the profit. We handle the transaction from start to finish!
