Record Low Interest Rates Not End All For Local Home-buyers

By: Kristin Burke
By: Kristin Burke

ROCKFORD- (WIFR)

23 news real estate expert Jon Krause says the number of homes going under contract is increasing despite a steep drop upon the expiration of the federal tax credit.

800 homes have gone under contract, since the end of April when the incentive lapsed. This is roughly the same number that were under contract during the same period last year, when the credit was still active.

Krause says the numbers prove the perk didn't steal as large of amount of future sales.. as originally feared. But Krause is surprised the record low interest rates isn't bringing out the large number of buyers anticipated, especially since the rate makes housing more affordable.

" If you take the average home that's on the market today.. last years interest rate at this time was 5 and a quarter percent. Today, it is under 5 percent. The difference in the average payment for an average home is about 60 dollars a month that's a lot. the savings in the interest that you are going to pay over the life of the loan could be as much as $21,000 over that 30 year life of the loan. so there is definitely a practical reason to go buy a house today."


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