Freddie Said Real Estate I Turning – Asheville Real Estate Turns Corner!

As the economy improves employment up and mortgage interest rate again below 4% is all contributing to a gradual rebound in home prices in real estate Asheville NC and across the Nation according to mortgage giant Freddie Mac’s 2012 Economic Outlook report, released Wednesday. However we still have a ways to go on the road to recovery for the housing market, the report noted. 

Freddie Mac has revised its forecast upwards for Asheville and National home sales. One economic contributor that’s helping to stabilize housing is the drop in the unemployment rate to 8.3%, its lowest level in three years, according to the report. 

Asheville NC real estate for sale home inventory in the lowest in 4 years compared to 12 months ago and Median home sale prices are up however a slight drop in new according to Freddie Mac reports. About a half of the increase in Asheville new housing and National starts has been for construction of rental apartments in multi-unit buildings to meet the increasing demand, the report notes. New rental construction, at its current pace, is expected to reach its highest level since 2005. 

Asheville NC Mortgage rates were down across the board this week compared to last week. Last week mortgage rates increased above 4% but now Asheville area real estate mortgage rates posting a big jump last week, a 30 year mortgage now offering another boost in home affordability for buyers dropping below 4% mark. However it is important to note as the economy improves and more people go back to work interest rates will increase.

Here is what you can expect this week.

  • 30-year fixed-rate mortgages: averaged 3.99 percent, with an average 0.7 point, falling back from last week’s 4.08 percent average. A year ago at this time, 30-year rates averaged 4.86 percent.
  • 15-year fixed-rate mortgages: averaged 3.23 percent, with an average 0.8 point, also slipping from last week’s 3.30 percent average. Last year, 15-year rates averaged 4.09 percent at this time. 
  • 5-year adjustable-rate mortgages: averaged 2.90 percent this week, with an average 0.8 point, dropping from last week’s 2.96 percent average. The 5-year ARM averaged 3.70 percent last year at this time. 
  • 1-year ARMs: averaged 2.78 percent this week, with an average 0.6 point, dropping from last week’s 2.84 percent average. A year ago, 1-year ARMs averaged 3.26 percent.

The beginning of spring Asheville real estate is starting off strong. Asheville NC real estate MLS searches have increased nicely on www.MillsRealEstateTeam.com web site.  Prospective Asheville Buyers seemed to be thinking different now and have told me they need to get off the fence before interest rates increase as well as Asheville home prices.