I was visiting my daugher in Chapel Hill last Sunday for Father’s Day and saw an article in her Raleigh News and Observer that caught my eye. It’s a column by Amy Hoak of MarketWatch on why mortgage rates are so low. It offers a good fundamental explanation of why we’re seeing such low rates and gives some idea of what may change that in the future. It also has some additional interesting info quoted from Clear Capital such as, “Clear Capital recently reported that national home prices were up only 0.1% in the second quarter, from the year-early period. That’s far from the 3% to 4% appreciation expected in a healthy market.” They go on to say that this is a first in quite some time, but still a necessary first step.
If you’re interested in the state of the real estate market both in terms of interest rates and home prices, I’d recommend you take a few minutes to read this well-written article HERE.