At least one fear was not realized amid last week’s stock market meltdown according to
CNNMoney.com: the concern that mortgage rates would immediately shoot higher in response to Standard & Poor's downgrade of Fannie Mae and Freddie Mac, the government-sponsored entities that are the 800-pound gorillas of the mortgage market. In fact, the initial response to Fannie and Freddie getting cut to AA+ from AAA was precisely the opposite. Mortgage rates were poised to continue declining.
Mortgage rates are set off of the interest rates on U.S. Treasury notes and bonds. Even though Standard & Poor's pulled its AAA rating of the United States, investors still rushed into U.S. Treasury securities as a safe haven, believing more in the "full faith and credit of the United States" than in the opinion of Standard & Poor's credit analysts. As investors snapped up Treasury notes and bonds they pushed down interest rates on those securities, which move inversely to prices.
Analysts warn the drop in interest rates may not last. If investment flows were to move back into stocks and out of bonds, interest rates on Treasury securities, and consequently mortgages, would rise. "Over the long-term, if the U.S. has to pay more in interest rates, consumer rates will likely go up," said Greg McBride, senior financial analyst for
Bankrate.com.
For now, lower mortgage rates may offer only limited benefits to American consumers. Banks' lending standards have been tough recently, and consumers need the wherewithal to qualify for loans. That appears increasingly difficult as the economy continues to sputter.
Now take a look at the Huntsville's real estate sales for July.
Madison County/Huntsville Real Estate Sales Statistics
Huntsville and Madison County saw an decrease of 1% in sold listings in July 2011 when compared to June 2011. The average sales price decreased by 4% to $198,448. The average price per square foot decreased by 8% in July and the average list price decreased by 4%, while market times increased by 1 day.
| Date |
Sold
Listings |
Average
List Price |
Average
Sale Price |
Percent
SP/LP |
Average
DOM |
Average
Price Sqft |
| July 2011 |
433 |
$204,223 |
$198,448 |
97.16% |
97 |
$75 |
| June 2011 |
435 |
$211,871 |
$205,958 |
97.29% |
96 |
$82 |
For more information about Huntsville AL real estate, please visit MoveToHuntsville.com or call me at 256-508-0211.
To begin searching Huntsville AL homes, please use my complimentary MLS search.
Statistics are based on information for the North Alabama Association of Realtors and are deemed reliable but not guaranteed.
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Having lived in the Huntsville AL area for most of his life, Mike Manosky understands exactly what makes this community special. In fact, those who know him well will tell you he carries the same traditional values and focus on the future as Huntsville.
Mike brings with him a keen eye for the details of buying or selling a Huntsville AL home and seemingly boundless determination and energy, which is why his clients benefit from his unique brand of real estate service. Rooted in Tradition, Focused on the Future - Mike Manosky will help make the most of your Huntsville AL real estate experience. Give him a call today, 256-508-0211 Direct or 800-803-0053 Toll Free, and discover the difference he can make during your family's move.