The high-end market, which had been largely unaffected by the expiration of the tax credit, is seeing a surge in sales as a result of the lower interest rates… A year ago, the rate for a jumbo loan (more than $417,000) ranged from 6.25 to 6.75 percent. Today, it’s about 5.75 percent for a 30-year fixed-rate."That’s what we need to have happen to fuel that upper-end market. The availability of quality jumbo product is for the upper-end market what the tax credit was for the under $300,000 market."
A home for sale is posted at a reduced price in Palo Alto, Calif., Thursday, June 24, 2010. Mortgage rates fell this week to the lowest level on record, giving consumers added incentive to lock in low payments for home purchases and refinanced loans. The lowest mortgage rates since 1971 are propping up the metro-area housing market, giving consumers an incentive to lock in low rates on home purchases.It’s the best news the market has seen since the expiration of federal tax credits aimed at spurring homebuying activity, some real-estate agents say.The average rate for 30-year fixed- rate loans dropped to 4.69 percent, from 4.75 percent last week, mortgage company Freddie Mac said Thursday.That’s the lowest point since April 1971, when Freddie Mac began tracking rates. The previous record of 4.71 percent was set in December. Rates for 15-year and five-year mortgages also hit lows.
By Margaret Jackson. June 25, 2010 Denver Post