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July 16, 2009 - PRLog -- The Housing market, which has been in a down cycle for more then four years, has a new challenge? interest rates have jumped nearly 1% point in the last month.
Some say the threat isn't major, even though higher rates increase a buyer's monthly payment, the price buyers are paying for homes have declined dramatically.
Some think the rates have reached a level where they will really cause problems with affordability because values are still extremely good. In some counties, the median price of a home was $160,000 last month, down from $25,000 two months ago. This is devastating to some, but the number of homes sold has increase for 10 consecutive months.
Policy makers at the Federal Reserve have indicated they want to keep the rates low, in an effort to stimulate the economy. The effort worked, rates hit a 37 year low in December of 2008. In the last three weeks, mortgage interest rates have jumped to the highest point in nearly seven months. Last week, 30 year fixed rate mortgages averaged 5.59 percent, according to Freddie Mac up from 4.92%  in May of 2008. An addition of 1 point, can add approximately $62. a month to a mortgage payment on 100k loan. On a 30 year fixed, the payment before taxes and insurance is about $520.00 at 4.75%. it jumps to about $540.00 at 5.75%. That difference might be enough to keep some home buyers at bay, or it might be the reason why some are buying now because they fear rates will continue to rise.
Buyers are still shaky. They are slow to act even with the incentives offered by the Federal Government $8,000 in tax incentives and $1,800 from the Estate of Georgia. some gotten used to rock bottom rates. The historic low level of recent months has brought in homeowners who refinanced older loans at he lower rate.
Rates are still low, home buyers should take full advantage of these historic low Real Estate, Low mortgage rates and Government incentives.

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About America's Network Realty Group, Inc. WWW.KSTREALTY.COM

America's Network Realty Group Inc. was established in 1992 in Dunwoody GA. Today we are still in the same location and have retained many of our original Real Estate Agents. About 10 years ago we saw the benefits of the Internet, and established a website to market all of our listings. Our website address is www.kstrealty.com Due to our continued efforts of updating and monitoring of our website, we have ranked in the first page of all the major search engines. The website has proven to be the main source of our leads and sales. Our lead management software is unique to our business model allowing us to manage and follow up all our website leads. We are constantly overwhelmed with calls, appointments and inquires from our website. we manage one of the largest databases with buyers, renters, builders, and sellers in Atlanta over 10,000 and growing daily.