Sunday's federal takeover of Fannie Mae and Freddie Mac will likely translate into lower mortgage rates and greater availability of credit, experts said. Rates could drop by 1 percentage point from the stubbornly-high 6.39% for a 30-year fixed rate mortgage.
In fact, when 2 local lenders sent rates to me today, I can see that rates are definitely FALLING!!
Bankers Mortgage Center (OIB) reports 30 year Conv Fixed Rate at 5.750 % (up to 95% & up to $417,000).
Iberia Bank's Conv. Fixed Rate is at 5.875 % while the Rural Development Loan is at 5.5 %.
This should be good for would-be homeowners. It will reduce the cost of financing at the new and improved Fannie and Freddie.
But the news isn't all good. With Friday's report that foreclosures in other parts of the country are at all-time highs (NOT in Louisiana), Fannie and Freddie are expected to maintain - if not ratchet up - tighter lending standards. And the fees they have introduced for borrowers with weaker credit histories won't go away anytime soon. Lenders are demanding credit scores much higher these days than the average 620 in the past, experts said.
While nationally U.S. home prices fell compared to last year, northeast Louisiana real estate is still in the win column, with average home prices climbing.
Here's proof. The following figures are from the Multiple Listing Service, NELA Assoc. of Realtors:
Total Houses sold Jan-Aug, 2007 = 1,560
Avg. price = $138,661, which is 96.2% of list prices
Avg. days on the market = 114
Compare to
Total Houses sold Jan-Aug, 2008 = 1,396
Avg. price = $140,096, which is 95.66% of list prices
Avg. days on the market = 118
(These figures are for all parishes in northeast LA, not just Monroe & West Monroe.)
Given the above, I believe we will have a fairly robust fall market here. So please call or email me with the next person you know who I could help buy or sell in Monroe, West Monroe, Calhoun, Swartz or Sterlington. I will be sure to take excellent care of them. Please feel free to forward this message on to people you feel would be interested.
Gayle Causey
318-614-5615
Keller Williams Realty
1390 Monroe, LA USA
http://westmonroerealestate.com
Gayle Causey, GRI, ePRO
Direct: 318-614-5615
REALTOR, Relocation Specialist
Find your house with your mouse: http://WestMornoeRealEstate or http://GayleCausey.com
Keller Williams Realty Parishwide Partners
1390 Hudson Lane, Monroe, LA USA 318-812-SOLD
Each office independently owned & operated. We Support Equal Housing Opportunity.
