Mortgage Rates Hits New Record Low

Freddie Mac reports that rates on 30-year mortgages fell to the lowest level on record for the second consecutive week. This week, average rates on 30-year fixed-rate mortgages declined to 4.78 percent, down from 4.85 percent a week ago. Refinancing activity has picked up because of the low rates, and the Mortgage Bankers Association says approximately 80 percent of mortgage applications came from borrowers seeking to refinance.

New Nashville home sales have also increased in the first quarter of 2009 while the average prices have declined slightly. It is thought that existing resales have declined during this same period as a result of the influx of new construction price slashing and the emergence of REO auctions as commonplace monthly events. Total inventory levels are on the decline pointing towards a housing bottom.