There's good news for first time home buyers and current homeowners who have been considering refinancing. Mortgage rates are at their lowest levels in years.
Mortgage rates have dipped to the mid and upper 4 percent range, and experts say we haven't seen rates that low in 40 year.
No matter where you look in Austin, you're going to find homes with for sale signs in the front yard. Thanks to interest rates that continue to drop, financial experts say those signs may as well say 'buy now.'
"At this time last year we saw rates go down below 5 percent to 4 3/4 to 4 7/8 now we are seeing them lower than that," said Paul Munin, the senior mortgage adviser for Horizon Bank.
On loans under $400,000 on a 30 years fixed mortgage, rates have dropped as low as 4.5 percent.
Paul Munin, the senior mortgage adviser for Horizon Bank says the low rates should be particularly appealing to homeowners looking to refinance.
"They have the ability to lower their payments several hundred dollars a month, which over the course of a 30 year loan adds up to thousands of dollars," Munin said.
Munin says on a typical $200,000 to $250,000 home loan, it is usually a good idea to refinance if mortgage rates drop one percent drop or more.
"It's money well spent," said Bill Martin, a property tax consultant who has helped several clients refinance their properties.
"We're right at a 40 year low in mortgage rates so now is an opportune time to lock in those low rates even if they have pay a few points to get the low rates, it's worth it," Martin said.
Mary Ann Robalino knows first hand refinancing is a good idea, but she can't do it right now for good reason.
"No because I refinanced a couple of years ago at a really low rate -- it's like 5 percent or something," Robalino said.
Robalino says refinancing helped her knock off about $400 on her monthly house payment. It's something Patrick Clemens would love to take advantage of.
"Because it would lower my mortgage payment, my monthly mortgage payment, because I'm paying for a house that I'm not living in, so I'm having to pay $1,200 a month for a house I'm not living in," said Patrick Clemens.
Interest rates began dropping in November 2008 when the federal government spent over a trillion dollars buying up mortgage-backed securities in an effort to loosen credit availability and pump up the sagging housing market.
Financial experts say while the Austin economy is showing signs of recovery, it's still got a long way to go.
