July has proven to be a good month for those looking to purchase a home or refinance an existing home loan in the Triangle area. Long-term mortgage rates dropped again this past week to the lowest levels ever recorded. The week ending July 22nd, 2010 showed a decrease in thirty-year fixed-rate mortgages from 4.57 percent to 4.56 percent. Mortgage rates this low have not been seen since 1971. For those not interested in a thirty-year fixed-mortgage, but would rather tackle a 15-year fixed-mortgage, an interest rate of 4.03 percent was the going rate, which has not been seen since 1991.
The down side to mortgage rates continuing to drop means it is a result of decreased confidence in the current strength of our economy. The National Association of Realtors reported that existing home sales fell by 5.1 percent in June, marking the second straight month for a decline. However, this was to be expected as a result of the home buyer’s tax credit coming to an end.
The good news is the Triangle area is faring better than other areas in the nation with overall decreased home sales. Buyers in the Raleigh-Durham area closed on 2,676 homes during this month, which is 7 percent higher than the number of homes sold in May and 13 percent higher than the homes sold in June of 2009.