2. Mortgage Rates are at Rock Bottom and Won't Stay That Way
Tennessee shares with the national average for a 30-year fixed-rate mortgage in August of 2010 was well below 4.5%. That is lower than it has been in the last half-century - prices that our parents and grandparents saw when purchasing their homes. Interest rates for the same time last year reached 5.19% which represented an increase of $90 in monthly payments on a $200,000 home with 10% down (the same spread shows savings of $32,460 over the life of the loan).
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Doug Duncan, Fannie Mae's chief economist, notes, "...Interest rates are at historic lows. It's hard to imagine rates going any lower than they are now. House prices have come down considerably..." |
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