Nashville Home Loans: Are interest rates going lower?

February 4, 2009 · Print This Article

If you are considering purchasing a home in the Nashville area, one of your primary considerations must be the current and future rates for Nashville Home Loans. Are interest rates going lower? Are properties more affordable now?

Perhaps a better approach is to consider the rates that are currently available in the context of where rates have been historically. Another consideration is whether there is a minimum rate below which rates would be unlikely to ever drop.

The historic perspective shows that interest rates are very low, and that mortgage loans are available at rates that haven’t been seen in decades. As for how low interest rates could go in the near future, it is a difficult task to predict where a “bottom” might be reached. Already, interest rates throughout the economy, from the Federal reserve rate to auto loans, to investor rates on CD’s and money markets, have been pushed down by the deepening recession. Some of these rates literally cannot get lower.

Current mortgage loan rates must almost certainly be near the bottom for the foreseeable future. Potential home buyers in the Nashville area will find that the combination of decreased home sale prices and the cost of borrowing mortgage money are together creating a buyer’s market.

If you have been waiting on the sidelines, now may be a good time to re-start your search for a home. You may find the home you have desired and also find it more affordable to purchase and to finance. Give me call at 615-942-2210. I will be happy to get you pre-approved for your new home. This will allow you to negotiate better and possibly get a better deal. I look forward to talking to you soon.

Written by Terrence Askew