Mortgage Rates Fairly Stable, Still Low

Freddie Mac reports a slight gain in the 30-year fixed mortgage rate to 6.46% during the week ended Sept. 6 from 6.45% the prior week. The 15-year fixed mortgage rate climbed to 6.15% from 6.12% over the same time span. Meanwhile, the five-year hybrid adjustable rate dropped to 6.32% from 6.35%, and the one-year adjustable rate dipped to 5.74% from 5.84%. Freddie Mac chief economist Frank Nothaft says mortgage rates barely budged because "the most recent economic news showed smaller increases than had been expected." This stabilized financial market has helped the Nashville real estate market turn out of the correction phase and back into a larger appreciating market.

It appears that the credit market will take another couple of months to work itself out. The Fed is expected to cut the Prime Rate by 0.25 basis points at their next meeting and most economists agree that a second 0.25 cut will take place before the end of 2007. If you have good credit, now is the time to buy that dream home in Nashville. You can really work nervous sellers over and secure a phenomenal deal!