Low Interest Rates Spur Busy Lending

By: Carrie Hutton
By: Carrie Hutton

It may be hectic, but these are great times to be a buyer. With the nationwide average fixed-rate mortgage at 5.25 percent, down from 7 percent last year, homes are more affordable than ever.

RE/MAX realtor Dave Torkko says people are buying better homes.

"Activity is three to four times what it would be normally if interest rates weren't so low", says Torkko.

Mortgage professionals in Rib Mountain are doing 30 percent more new home loans and refinancing compared to last June. They are often in the office before 7:00 a.m. and after 7:00 p.m. to meet the demand.

As for any predictions of a slowdown, "It's my belief that in August things will start slowing down. Once the economy makes a turnaround, I don't see how interest rates can continue to go lower," says Sue Lipsman, President of Mortgage Professionals.