ResalesMarietta, Georgia Buyers Respond Quickly To One Percent Rate Hike
Rising interest rates have encouraged some buyers to make a decision, say local Marietta, Georgia Realtors.
"The average rate for a 30-year fixed mortgage is now up to 6.25% on average," say Realtors Chris and Charlotte DeMarco. "Buyers who were taking their time making a decision about home ownership are now in a hurry to find the right house before the rates get any higher. The greater Atlanta area is an attractive place to live. According to figures released by the U.S. Census Bureau as reported by WSB750 radio this morning, one million people moved to Atlanta between 1995 and 2001! California lost 750,000 people during the same time period. No wonder Realtors are staying so busy around here! If you are buying or selling a home the time to act is now."
Say Realtors Janet and Stuart Brenner, "Marietta is a growing area in Northwest Atlanta with excellent schools, expressway access, and shopping.
They advise, "The fall forecast is looking good for market watchers, especially those of us who reside in Atlanta and the surrounding areas. Home buying activity is beginning to rise in the Metro area, leading local economists to believe that our economy is finally gaining some previously lost steam. Of course, the announcement that Newell Rubbermaid is relocating a large operation to the Alpharetta Area sometime in late 2003 or early 2004 is also great news for us all, and will undoubtedly spark new life into our seemingly sluggish economy. Furthermore, home buying activity has also being spurred by the fear of many potential homebuyers that this may be the last time they see interest rates under the 6 percent rate for some time to come. And, this is not an unusual reaction. In fact, it has historically happened any time the interest rates have dipped, and then started their climb back up. With this in mind, look for the home purchase business to be very active from now until at least the first quarter of 2004. This rise in home purchases will finally begin to move the real estate market from a buyers market to a sellers market, something we have not seen in almost two years."
The Brenners caution, "Whether buying or selling, you will want to know that 30-year fixed rates are quickly approaching the 6 percent plus mark for the first time in a year. In Atlanta, the 30-year fixed rates are already hovering in the 5.75% to 5.875 percent, which represents an almost 1 percent rise over the past 30 days. At quick glance, this rise in 30-year fixed rates may not seem like good news. However, upon closer examination it is easy to see that this is indicative of an overdue economic bounce-back. Other signs that the economy (both locally and nationally) may in fact be coming out of its latest lull include lower unemployment claims, higher retail sales, and a rise in factory utilization. And despite all this good news, there is more - inflation remains virtually nonexistent, aiding to the recent speculation that we may see one more rally downward for fixed rates before we head higher again! Thirty-year fixed rates may test the 5.5 percent range again within the next 30 days, but the long-term forecast is for 30-year fixed rates to end the year in the low 6 percent range. While this is a rise from the high 4 percent fixed rates we saw at the end of May, the 6 percent level still represents some of the lowest rates we have seen over the past 30 years. For now, interest-only loans are still the hottest product, boasting very little movement over the last 30 days. In fact, the 5-year interest only loan that was 4.5 percent last month is only at 4.75 percent this month. This payment is equivalent to a fixed-rate payment of 3 percent for 5 years! The interest-only loans still give borrowers the option to pay down their principle at their own pace, while rewarding them with a recasting feature to a lower payment if they pay down their principle."
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