The 30 year fixed rate mortgage dropped today to 3.56%. This is down from 3.62% last week and is the lowest since the 1950’s. Mortgage buyer Freddie Mac also announced that 15 year fixed rate mortgages have dropped to 2.86% from 2.89% last week, which are often used for those looking to refinance. The 30 year loan rate has fallen or matched record lows for 11 of the past 12 weeks. These rates can help the economy since people will be refinancing and making improvements. Investors can take advantage of these rates since often the rental revenue is higher than the mortgage payment.
We are seeing this clearly in Miami, since the rental prices are increasing, new projects are being developed, and home prices are on the uptick. This is hardly a trickle down effect since jobs are created whether it is through a new building or simply through labor needed to make improvements on homes. New developments in the commercial sector are also increasing. The proposed development in the Design District will likely spur buying in the surrounding areas of Little Havana and Wynwood. Investors are snapping up properties everywhere in South Florida and for good reason, Miami is a sound investment for rental properties or commercial centers. If you are looking for properties in South Florida, contact us today to get the inside track on the latest developments.
