“After Federal Reserve actions to increase liquidity in the mortgage market, interest rates for fixed-rate mortgages (FRMs) took a dive,” said Frank Nothaft, Freddie Mac vice president and chief economist. “This week’s decline was the largest since the week of November 27th, 1981, and 30-year FRM rates are now almost a full percentage point lower since the last week.
At some point all of these rate changes are bound to affect the Nashville real estate market in a positive and substantial way. It just might take until next year to be able to accurately measure the results.
Meanwhile, the news for the commercial real estate market is much worse. It appears that may commercial loans are heading south and will inevitably take a huge bite out of commercial real estate values throughout 2009.