Mortgage rates fall further, helping home buyers
FRESNO, Calif. (KFSN) -- There is some good news on the housing front. For the first time in 60 years, mortgage rates fell below 3.5 percent.
That's good news if you're looking to buy a home.
Historically low mortgage rates mean high hopes for home buyers here in the Central Valley.
Fresno loan officer Paul Salazar says if you're looking to buy it's time to get excited about that 30-year fixed loan.
"A lot of people were paying seven's and eights you know, four or five years ago. That interest rate coming down low it does two things. Not only does it help the first time home buyers. But it also helps people to refinance and right now we are going through this whole refinance boom because of the lower interest rates," Paul Salazar of California & Funding Investments said.
For example, if you were to get in now at 3.49 percent on a $150 thousand home you would save about $220 dollars a month on your payments.
A 15-year fixed rate is also down slightly this week adding to the record low interest rates for long-term mortgage loans.
But local realtors like Don Scordino say buying a home can be tough because supply is nowhere near the demand.
"In some respects you would think it's sellers market because there's so few homes out there. But yet the interest rates are making it a buyers market," Don Scordino of Realty Concepts said.
This is good news, but don't be fooled. Both Scordino and other Valley realtors say cash is still king, meaning those with it will have an advantage over first-time home buyers.
Salazar offers sound advice before taking the next step in home ownership.
"It all depends on your circumstance. It all depends on the loan program. Your credit score which is number one. It's very big on that. So you may want to check with your local lender and make sure that you can qualify for those low rates. And from that point on you can get anything you want," Salazar said.
Meanwhile Valley developers are working as fast as they can to increase the supply and meet the demand locally.
economy, housing, business, tommy tran
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