Lake Level Rising, Interest Rates Dropping!

It’s a great time to get a lake home!

You can tell it is April because Lake Martin is only two feet below full pool. Every March, Alabama Power begins the process of raising lake levels seven feet from winter pool to full pool by May 1. Given the abundant winter and early spring rainfalls, this summer promises to be one of the best in recent memory for providing wet fun relief from our southern summer heat. Area creeks, streams and rivers are currently full and able to provide ample supply of water for Lake Martin. It should be fun!

Interest rates falling

As sure and steady as the lake level increase has been, interest rates have dropped significantly since the fall of 2018. We saw mortgage rates on some types of loans reach as high as 5.25% from rates that were as low as 4% in 2017.

Since last fall, the Federal Reserve and financial markets have reversed course again. At the end of March, interest rates for a 30-year conforming* averaged just above 4% nationwide. Jumbo mortgages, which are used in many lake purchases, are available at 4.25%. Since rates are down, the cost for having fun is down too!

Comeback story of the year

Who could have predicted the return of rates that are near historic lows? This time last year, we predicted and expected rates to be headed toward 6% sometime in 2019. No one in the financial world saw this return to 4% rates coming. These low rates for real estate create that “one more chance” that many people were hoping for.

With increasing lake levels, beautiful spring weather and very attractive interest rates, this might be the best year in a long time to find your dream lake home.

A note of caution

Interest rates are hard to predict, and the sudden decrease in rates can reverse direction without warning (or reason). Lenders typically lock in rates for a maximum of 45-60 days, so the best way to take advantage of these great rates is to act quickly.

For information on property availability and current rates, call one of our Sales Executives at 256.215.7011 today.

* Conforming loans are those that are eligible for purchase in the secondary market by Fannie Mae or Freddie Mac and are capped at $484,350. Loans above that amount are considered “Jumbo” loans and have roughly one quarter point higher interest rate than conforming loans.