The average rate on a 30-year fixed rate mortgage fell for the second week in a row this week to 4.31%, down from 4.37% last week according to Freddie Mac.
While the rate has now fallen for 2 weeks, the rate is still nearly a full percentage point above the level it was at in early May. While rates are still low by any historical measure, they have risen since the Federal Reserve suggested that it might begin reining in its bond buying program later this year. But, the higher rates do not seem to be depressing home sales.
Judie Berger, a friend of mine and respected Associate Broker and Sarasota luxury homes Realtor with Premier Sotheby's International in Sarasota Florida, said that in spite of the rising rates, homes for sale in Sarasota Florida continue to sell almost as fast as they come on the market. Realogy, the nation's largest residential broker, agreed saying that its transaction volume grew by 21% in the second quarter of 2013 from the level at the same time in 2012.
Builder confidence also remains high, rising this month to 57 on a scale from 1 to 100. At the bottom of the housing bust, that index had dropped to as low as 10. Builders attribute the improved confidence level to both higher traffic through model homes and higher expectations about future sales. Builder confidence in the Sarasota real estate market is indicated by the fact that several builders have started new developments or added on to existing developments in recent months in the popular Lakewood Ranch development.
Lakewood Ranch has been at the epicenter of home building activity in the Sarasota County this year driven by builders Taylor Morrison, Lennar and Neal Communities in both existing neighborhoods such as Central Park and Country Club East and the newest start-up community of Bridgewater.
For information on mortgage interest rates or the state of the Sarasota real estate market. feel free to contact me at 941-266-1799. I'd be delighted to answer your questions.
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