Amazingly 30-year fixed rate mortgages on Hilton Head Island and Bluffton, South Carolina, have been hovering around 4.8%. Our local rates track with the national averages. The chart above displays the historic proportion of today’s rock bottom interest rates with graphic clarity. MIND-BLOWING. The interest rates of the last 16 months are below all previous records tracked by Freddie Mac. Mortgage money has never been “cheaper” at a time when home prices couldn’t be more attractive.
These history-making low rates combined with an almost unprecedented drop in home values have made the monthly cost of owning a home today, according to the National Association of Realtors, the lowest since records began in 1970.
And there is no place for current interest rates to go but up. With these rates expected to rise over the next year, many savvy Hilton Head Island, Bluffton and Beaufort home shoppers are taking advantage of the opportunity to buy an undervalued home with cheap money. Home sales in the Hilton Head area in the first four months of 2011 are up 14% over a year ago, a reassuring sign of local consumer confidence.
And here's an interesting note: for every 1% rise in interest rates, buyers will pay 10% more in monthly principle and interest payments … a crucial fact that is often overlooked.
The stars are lining up for a surge in home sales: historically low interest rates, compellingly low prices and the thundering stampede of millions of Baby Boomers headed into their retirement years.
Call us today. Our friendly, competant brand of service will help you find thet dream home at a fraction of what it would have cost five years ago.
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