Experts say economy improving as mortgage rates reach 7-year high

Experts say economy improving as mortgage rates reach 7-year high
Home for sale sign in Pooler, GA. (Source: WTOC)

POOLER, GA (WTOC) - The Federal Home Loan Mortgage Corporation, also known as Freddie Mac, says America’s home mortgage rates have reached seven-year highs.

But area realtors say homebuyers shouldn't be concerned because it actually shows the U.S. economy is improving.

Homes are popping up left and right at the Hunt Club in Pooler. WTOC spoke to one realtor who says this as well as the latest mortgage rate numbers are all signs of an improving economy.

It's been just a little over ten years since the housing market crashed in America, and Savannah Real Estate Agent Lorenzo McDonald says it looks like we're finally recovering from it.

The latest mortgage rate numbers from Freddie Mac show that a 30-year fixed rate mortgage, which is the most common among homebuyers, has now reached 4.90-percent. A 15-year fixed rate mortgage is now up to 4.29-percent.

Although those mortgage rates are the highest the country has seen since Spring 2011, McDonald says this shouldn’t be alarming because the latest numbers show better financial stability among Americans.

“Several years ago, before the market crashed, a good mortgage rate was 6-percent. So, to put it into perspective, mortgage rates climb when the market is good. Here in America, we have a pretty good economy. It means that if you have the ability to purchase a home, then you have a job and things are going pretty well for you,” McDonald said.

McDonald says lower mortgage rates typically show a struggling economy, so it’s good that we are seeing these current numbers.

If you are looking to buy a home, agents recommend you go ahead and do it now. McDonald expects we’ll continue to see an increase in mortgage rates.

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