Mortgage rates hit the lowest they have been since mortgage rates began being tracked in 1971.  The average rate for a 30 year fixed mortgage wound up at 4.85% for the week ending Thursday March 26.  Not a bad mortgage rate for those either refinancing or purchasing a new home and the drop shows that the government’s commitment to invigorating the housing market is working, at least to some extent.  The decrease in interest rates means that mortgage debts held by existing home owners can become more affordable when they are refinanced.  The low rates also might entice those waiting on the sidelines to enter the real estate market.

The lower mortgage rates are an effect of the Federal Reserve committing to an influx of cash in the Treasury, a plan meant to stimulate the housing market.  A recent Reuters Article quoted Lawrence J. White, professor of economics at New York University’s Stern School of Business, as saying “everything helps when it comes to the U.S. housing market and lower interest rates on mortgages should make it easier for buyers to enter the market and absorb supply, which is still quite high.”  Lower mortgage rates, tax incentives and decreasing home values should all add up to more affordable real estate across the board.

For a complimentary search of the Sedona MLS and access to all property currently on the market in Sedona AZ, visit www.claudiaault.com. For the best in Sedona Real Estate service and knowledge, contact Claudia Ault at 928-301-3016.

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