Lufkin's housing market crowded with buyers; realtors predict high mortgage rates
LUFKIN, TX (KTRE) - Some real estate brokers here in Lufkin are warning their customers that 30-year mortgage rates are expected to be increasing soon due to the current stable economy that is causing a rush on housing.
"We have a very strong seller's market," said Gann Angie Williams, a realtor with Gann Medford Real Estate. "We have few homes on the market, and we have tons of buyers."
Recent data from Freddie Mac, a federal loan company, revealed a steady trend in decreasing the 30-year mortgage rate.
As of Thursday, the rate was at 4.5 percent.
This rate has some real estate brokers like Jeff Buchanan of Buchanan Realty to advise their customers to buy.
"I think as a real estate broker, we always say, 'Hey, it's time to buy, it's time to buy,'" Buchanan said.
Buchanan said he pushes buying now due to an expectation that interest rates will increase very soon.
"If interest rates go up a point, that could raise your total monthly note $50, $100, $125 for that one percent," Buchanan said. "So, it makes sense if you're going to plan on living somewhere for 10 years to go ahead and purchase now so that your note will stay low."
But, what exactly causes rates to increase?
"When the economy does well, everyone's 401ks are good," Buchanan said. "The markets are up. It's just time for interest rates to start coming up. It's kind of writing on the wall."
And, some brokers strongly believe it will increase, judging by previous numbers.
"At the beginning of this year, we saw the rates go up to just under five percent, which is just about a point higher than they had been over the past several years," Williams said.
Data showed that the 15 and 5-year mortgage rates had less of a pattern.
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