LITTLE ROCK, Ark. (KTHV) - Mortgage rates hit another record low last week peeking even more people's interest in buying a home.
Bill Goodwin with Delta Trust Mortgage sat down with THV's Alyse Eady to talk about what's going with our local housing market and comment on these historically low interest rates.
THV: Let's start with an industry update...how is the housing market in Central Arkansas?
Bill: People are buying homes. Delta Trust Mortgage closed 50% more home loans this year when compared to the same time as last year. The title companies are also staying consistently busy and that's a good indicator of the market. We are seeing an increase in business and hopefully that's a great sign for Arkansas' economy
THV: Can we assume that the increase in business is due to the low rates?
Bill: Yes, interest rates are the lowest they have ever been. This is a great time to buy, and I'm seeing a lot of first time home buyers. Individuals that always rented are now ready to invest in a home because, in some cases, their monthly commitment is actually going down. With rates as low as they are today, the housing market is actually a great place to make an investment.
THV: I'm sure everyone is asking how long can we expect rates like these?
Bill: Well, we don't know that answer, but we do know that they will stay low until we have a major change in economic policy. At the moment, rates are low in an effort to help stimulate the economy and keep more cash in consumer's pockets.
THV: So this is the time to buy but how easy is it to actually finance a home right now?
Bill: This is a question that I hear all the time. The public's perception is that buying a home a very difficult and that the process is just awful. That's really not true...it's not easy, but it's not near as difficult as people would imagine. There is a lot more paperwork and documentation than there was ten years ago but that's my job...to help talk you through everything and evaluate your situation.
THV: Besides rates, what else are people talking about in the home financing industry?
Bill: In October, Arkansas will experience a few changes to the Rural Housing program. This is a program that was created to assist home buyers purchasing real estate in areas declared rural by the US government. In Arkansas, many areas that we considered suburbs were actually considered rural by the government. Next month, some of these areas will be redefined and that's big news for the Arkansas housing industry.
If you have questions for Bill, you can contact him at 501-932-5000 or bgoodwin@deltatrustmortgage.com.