Shoppers for new homes in the Birmingham area received some interesting financial news this week…even lower interest rates! The recent changes from the Federal Reserve have now resulted in even lower mortgage rates, making this market quite favorable for home buyers. The average rate on a 30-year mortgage went from 4.01% down to 3.94% in the last week due to the Fed's buying and selling of its short-term vs long-term securities.
Even before this week's drop, rates have been near historic lows for months in an attempt to boost sales of previously occupied homes. The Fed's shuffling of securities has also helped drop the rate of a 15-year fixed loan to 3.26%. By dropping the rate on the 15-year fixed, not only do new homes for sale look more attractive, but so does the option to refinance and existing mortgage.
The lowered rates help not only to boost home sales and refinances, but the money saved on mortgage payments inevitably gets pumped back into the economy. The economic benefit to the situation is two-pronged, and has makes for the best time yet for home buyers to be looking for new homes for sale in the Birmingham AL area.