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The Real Deal Miami

Low mortgage rates still out of reach for many SF borrowers

October 11, 2011 11:41AM

Last week, Freddie Mac announced that the
average rate for 30-year fixed-rate mortgages had fallen to a new record low
of 3.94 percent. At the same time, the average rate on 15-year fixed loans
dropped to 3.26 percent, another new low. But for most of South
Florida, where 47 percent of borrowers have no equity in their homes,
these low rates are nothing more than a tease. Market analysts agree
that only candidates with flawless credit will be able to snag a rate
under 4 percent. “It’s very frustrating because so many people can see
it but they can’t have it,” said Ken Thomas, a Miami-based bank
consultant and economist. “The idea is to bring down credit rates to
spur home buying, but we can’t take advantage of it and it’s holding
back the recovery of South Florida’s market.” [Palm
Beach Post]