Last week Freddie Mac announced that mortgage rates were back down to record lows after a brief increase the week before. The 30 year fixed rate mortgage average was recorded at 3.49% down from 3.55% and the 15 year fixed rate mortgage was down to 2.77% from 2.8%. Last year at this time the average mortgage rate was at 4.09%, what a difference a year makes! The Federal Reserve also announced that it would continue to purchase mortgage bonds to the tune of 40 million per week in the hopes of continuing to reduce the mortgage rates and stimulate the housing market, and the economy in general. Wells Fargo Senior Economist Mark Vitner had this to say regarding the Federal Reserve decision and the mortgage rate status, “Mortgage rates are going to be lower than they would otherwise. Housing looks like it’s going to provide a significant lift to the economy over the next year.”
Nationally, the housing market is in recovery mode, and locally, homes are scarcely on the market for 90 days. All indicators are excellent regarding the current real estate market. Home prices are steadily increasing, the inventory is decreasing, and the amount of time a listing is on the market is shrinking. Further, builder confidence is high and new developments are rapidly coming to fruition. In Miami, new condominiums are being announced in droves, most notably Chateau Beach, Icon Bay, and Porsche Design Tower. Many of the new developments in Miami are in Downtown and Sunny Isles, due to available land, however we expect to see increased development of new homes in Miami Beach as well. For more information on buying or selling a home or condo in Miami Beach contact us today!