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Housing Market: Interest rates stay low, home sales up
CINCINNATI (Paula Toti) -- Despite the fears of rising mortgage rates they have remained low and some experts feel rates have room to run even lower this summer.
One thing new that's happening is people are now willing to call the tri-state a, "seller's housing market." Much of this is being fueled by the low interest rates.
Jason Skope, a mortgage lender at Union Savings Bank said, "These are good times in the mortgage business, particularly refinancing. But as that's slowing the purchase market heated up this year."
Local 12 met the Johnston family who said a new house is in the back of their minds. They would definitely shop for the best interest rate. Those rates are in the low four percent range for a 30 year fixed rate mortgage and a low three percent for a 15 year fixed. Despite a pickup in the economy rates have stayed low with inflation in check.
Skope said he thinks rates will stay low, or at least stable, this year. Those low rates are particularly important to first time home buyers. Melissa Brown Hilvert is a Comey and Shepherd realtor. She said she has seen under $130,000 homes get multiple offers and even sell for over the listing price.
If people aren't ready to make a move just yet, keep in mind the 30 year rate is more volatile, moving up and down more, than the 15 year rate. So if a person is a first time buyer where every dollar really counts, waiting too long could be costly. If you have a lot of equity in your home and can swing a 15 year mortgage it is a good deal and historically low.
Remember rates can change at any time. Last summer when the Federal Reserve pulled back on its bond buying program, rates went up three quarters of a percent in a matter of weeks.
When shopping for a loan, compare not only the interest rate being offered but the closing costs.
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