US rates are lowest since 2004 and hit investors radar
With latest rate drop, US mortgage rates are at their lowest point since 2004 and foreign nationals realize that this is the prime opportunity to invest in US property markets.
As announced by Freddie Mac, US home mortgage rates have fallen to the lowest levels since 2004. This lowering of the interest rate can prove beneficial to anyone purchasing property in the US, including foreign nationals who are eying their ability to get into the market and save money by doing so.
Last year at this time, interest rates on a 30 year fixed rate mortgage were at 6.25 per cent. This year, with the week ending Thursday, a 30 year fixed rate mortgage will cost just 5.48 per cent, with further drops in cost likely to continue.
What this does for the economy in the US is still to be seen, but what it has done to pique the interest of foreign nationals is important. Investors from around the globe are paying attention.
According to figures released by the National Association of Realtors, some 65 per cent of Florida agents have at least one international client. Some 7 per cent of home sales here are from foreign purchase.
With dropping interest rates, these markets are likely to see even more interest from foreign nationals who qualify here. More so, the weak dollar also plays a role in just how affordable property is here in comparison. In addition, with so many high value properties selling for below market value due to foreclosures, even more opportunity can be seen. Investors are seeing America as more affordable than ever.