Record Low Interest Rates and Recovering Economy Positive Trends for Atlanta Home Buyers
January 28, 2012 (PRLEAP.COM) Business NewsJanuary 28, 2012 - (Atlanta, GA) With the Federal Reserve's recent announcement that interest rates will be kept low through 2014, the current low mortgage rates home buyers are enjoying should stay firm and boost home buying activity. Along with downward unemployment trends and a slight increase in the Home Price Index over the last three months, the real estate market is showing signs of an upswing. Potential home buyers should make their home purchases soon while prices are low and financing is cheap.
"We've had a clear turn toward positive momentum in the housing market," Aaron Smith, a senior economist at Moody's Analytics Inc. "Lower unemployment and higher confidence, coupled with record low mortgage rates, are coalescing to spur increased buying." The average rate of a 30-year fixed mortgage fell to a record-low 3.88 percent as of January 19, according to data by Freddie Mac.
The Atlanta area economy is also showing signs of recovery with December's drop in Georgia's unemployment rate to 9.7%. The local housing market should benefit greatly from this upward momentum. According to the eighth Annual Demographia International Housing Affordability Survey, the Atlanta area ranked second most affordable among 81 major metropolitan markets with a populations of over 1 million.
Home sales in in-town neighborhoods will lead the way, as home buyers continue moving "inside the perimeter." Homes for sale in Decatur and Virginia Highlands, for example are a popular choice for in-town buyers. Sales of existing housing stock in Decatur increased 13% in 2011 and permit and inspection fees increased 76%, according to recent City of Decatur statistics.
"Now is a great time to explore the Atlanta real estate market," said the manager of the housing website DecaturHomeForSale.com. "According to online calculators, a 30 year fixed mortgage on a $150,000 house will result in a monthly payment of around $740, cheaper than the monthly rent for some apartments. First time home buyers definitely have a favorable position in the market today."