Data from government-sponsored mortgage firm Freddie Mac showed that mortgage rates dipped to 4.2 percent for 30-year fixed rate loans early in July. Mortgage rates hit one of its record lows in October 2013 to 4.10 percent.
The report revealed that the news came at a time when experts forecast a rise in mortgage rates following the U.S. Federal Reserve’s announcement that it will take its purchase of treasury bonds and mortgage-backed assets down a notch.
“This is more remarkable with the economy coming back up to speed and a bit more inflation pressure than we've seen for a while,” mortgage research firm HSH.com vice president Keith Gumbinger told CNN Money.
Gumbinger noted that much is yet to be known as to when mortgage rates will begin edging up. As a result, he said, homebuyers are seizing the moment.
Lower mortgage rates benefit homebuyers who are planning to buy their starter home. Latest real estate data stated that in May, new residential construction sales climbed by 19 percent and existing home sales rose by five percent.
Would-be home sellers, on the other hand, are bemoaning the downtrend. One homeowner in Seattle named Ryan Carson, for instance, stated that while he could use a larger house for his growing family and make money from the sale of his home, he’d rather stay put.
“I have no interest right now in selling,” he was quoted saying in a CBS Money Watch report.
The report also revealed that many homeowners are renting out their old homes as they move into new ones, resulting into lower inventories. Home prices rise when inventories are low.
“Higher prices and limited selection have put the brakes on a housing recovery that began in 2012,” the report stated. “And slower home sales, in turn, drag down economic growth. Fewer sales mean lower commissions for real estate agents. Sales of furniture, appliances and garden supplies also take a hit,” it added.
Bankrate.com meanwhile quoted a slightly higher mortgage rate of 4.31 percent on Thursday, following the release of improved non-farm payroll data in June. The economy added 288,000 jobs in June, according to the Bureau of Labor Statistics.
One technology that real estate agents and brokers could leverage to bring balance to their home sales regardless of mortgage rate movements is RealBiz Media Group, Inc.’s (OTCQB: RBIZ) Nestbuilder Agent.
Nestbuilder Agent is an agent-facing feature of consumer site Nestbuilder.com, targeted at over one million American real estate agents.
It allows real estate agents, with or without listings, to establish their reputation and brands through a personalized online video channel where they can promote new listings and open houses in their communities, create informative content for property sellers and buyers, and connect directly with potential clients.
The platform also automatically creates customized Agent Video Reels containing listing and agent information that users can forward to potential home buyers through social media and email. The reels link back to the agent’s Nestbuilder.com channel, allowing agents to find out leads they could pursue.
“The extremely personalized and targeted functionality of Nestbuilder Agent is a boon for agents who want creative outreach options to capture the attention and the imagination of prospects and clients with new and innovative content,” said RealBiz Media President and CRO Steve Marques said in a press statement.
“Nestbuilder Agent is a highly-effective tool for agents every day—not just when they have listings. It empowers agents to maintain an ongoing dialogue with their clients; clients will enhance the agent's efforts by sharing Agent Video Reels with family and friends. It makes Nestbuilder Agent a fantastic tool for agents to promote themselves through a diverse array of communication media,” he added.
Nestbuilder Agent memberships cost only $10 per month. According to the company’s press release, the platform is also seen to benefit 800,000 agents without listings this year.