Real Estate
Savannah Georgia Real Estate News: Home Sale Reports Pointing Up

Since hitting long-time lows in June, mortgage interest rates climbed during the summer. According to Freddie Mac, fixed-rate, 30-year financing was available in late August for 6.28 percent with .8 points.

Even with the higher rates for fixed-rate mortgages, a number of interesting financing options are being offered. Fifteen-year mortgages have recently been available at less than 6 percent while ARM start rates were under 4 percent at the end of the summer.

Although ARM rates will change during the term of the mortgage, their liberal qualification standards may allow borrowers to obtain larger loan amounts.

Home Sales Remain Strong

Although mortgage rates have risen since June, demand for real estate continues at high levels.

Existing home sales in the second quarter were running at the second-strongest pace on record according to the National Association of Realtors, with 36 states and the District of Columbia posting increases from a year ago.

For the first time since reporting began in 1982, NAR says home prices in the second quarter increased in all metropolitan areas for which data was available compared with the same period a year earlier.

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The association's second-quarter report, covering changes in 126 metropolitan statistical areas, showed 40 areas with double-digit annual increases in median existing-home prices and no metro areas with price declines.

New home starts hit a 17-year high in July, according to the National Association of Home Builders, when the seasonally-adjusted annual rate reached 1.87 million units. This is 1.5 percent above June and, says NAHB, it's "the strongest rate of housing production since April of 1986."

National averages, of course, may differ from local patterns. For the latest community trends, consumers should speak with their local real estate broker.

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