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Home sales, interest rates rise
CLIFTON PARK -- Home sales continued to grow this month, reaching their best numbers since before the recession began. Existing homeowners are also doing well by refinancing their mortgages at low rates.
“For values of houses we're actually above valuation for where we were before the recession occurred,” said Drew Aiello, loan originator at Homestead Funding Corp.
Experts say while interest rates remain comparatively low, the rates have likely already bottomed out.
“They missed the boat, they missed the bus, they missed any type of transportation. That was generational low if not multi-generational lows. The lowest rates in 50 years,” said Dennis Fagan with Fagan Associates, adding there was positive news with increased values. “As the house you own goes up in value you’ll be able to take a home equity loan so we're moving in the right direction, but we don’t want a bubble like we had before. We want a sustainable growth like we have now.”
Aiello recommends homeowners review their current mortgage and try to lower interest rates. He points to a recent study that found many owners still have mortgages above 5 percent interest.
“The only two things I could think of is A) just not getting around to doing it, thinking low rates are going to be here forever,” said Aiello. ”Or B) some people might still be underwater.”