Staff Writer
Record-low mortgage rates have homeowners and potential home buyers flocking to their local banks.
On Thursday, mortgage rates fell to the lowest levels in decades for the 10th time in 11 weeks. The average rate for a 30-year fixed loan was 4.32 percent. The 15-year fixed loan hit 3.83 percent. Rates were even lower in Augusta.
Georgia Bank &Trust was offering a 30-year fixed loan for 4.125 percent on Thursday afternoon, said Chum Balk, the vice president of mortgage lending. A 15-year fixed loan was 3.625 percent.
"We have experienced a very nice increase in people that are interested in new home purchases and refinance transactions. It's great to be able to offer attractive interest rates to the public," Balk said.
At Security Federal Bank, homeowners could get a rate as low as 4 percent for a 30-year fixed loan, if they had a high credit rating and a low loan-to-value ratio, said Richard Harmon, the senior vice president for mortgage lending. They could get a 15-year loan for 3.5 percent.
"That's just incredible. We've been awfully busy for the last couple of months. Right now, refinances are 50 percent of our new business," Harmon said.
First Bank Mortgage and First Citizens both offered a 30-year fixed loan for 4.25 percent on Thursday. The 15-year fixed loan was 3.75 percent. Customer traffic increased at both financial institutions.
"It's been busy. People have been refinancing," said Peter Franklin, a vice president at First Bank Mortgage.
First Citizens has been offering a 30-year fixed loan for 4.25 percent for over a week. The 15-year loan at 3.75 percent has been available for several weeks, said Beth Upton, a mortgage loan originator.
"I'm shocked they've stayed this low for as long as they have. It's great. The phone's ringing off the hook. People are able to take advantage of buying more house than they would have been able to afford in the past because of the rates," Upton said.
Most customers have been refinancing their homes, but there have also been some purchases, she said.
However, there's no way of knowing how long these rates are going to last, Franklin said.
"The market is pretty volatile," Harmon said. "Right now, rates are very, very attractive. There's a lot more room for them to go up than there is for them to go down. So folks that are considering refinancing, I would recommend that they go ahead and move pretty quickly because these rates may not stay down here that much longer."
Rates have been falling since the spring as investors have shifted their money into safer Treasury bonds, according to the Associated Press. The low rates haven't been enough to boost the struggling housing market. Home sales are at the lowest levels in decades.
The low rates are good for buyers, but not necessarily the seller, Upton said.
"I never thought they would get as low as they are. A year ago, the rates were at five percent and people were holding out for it to get into the fours. Now we're looking at getting into the threes. It's just incredible," Upton said.
