Lower mortgage rates may be leading to soaring home prices

Low mortgage rates may be leading to more luxury home purchases.According to recent housing figures released by the government, home prices have begun to take off, perhaps a result of the nation's low interest rates for mortgages.With rates more affordable, more homebuyers may have entered the market, which can drive up property prices. In Kansas City, for instance, prices grew by as much as 54.5 percent during the second quarter compared to 2010. In addition, prices in Detroit were up 39 percent, while Indianapolis' values jumped close to 28 percent, the Federal Housing Finance Agency discovered.A recent article in the Los Angeles Times states that prices did not jump this radically in a year's time. However, instead, an increased number of expensive properties were sold in these regions, which drove up the median price of real estate sales in the area.While prices were up in a majority of the 32 largest metro areas surveyed by the company, some were not as successful. In San Antonio, prices were down close to 31 percent.The Houston real estate market performed well recently, however, as home prices and sales were up during July, the Houston Association of Realtors reported.Courtesy of 2M Realty News

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