Mortgage rates have hit historic lows across the nation. A
30-year mortgage rate is 3.87 percent while a 15-year mortgage is
3.14 percent, according to federal realtor Fannie Mae. The State
Bank Assistant Vice President and Mortgage Officer Ann Rockman said
the current mortgage rates are the lowest she has seen since she
started mortgage lending in 1990.

 ”An 11.5 percent mortgage rate was the highest rate I ever
wrote a loan for. When it dropped to 9 percent, there was a
refinance boom,” Rockman said. “With interest rates being as low as
they are, it would be in everyone’s best interest to refinance
now.”

 Rockman said mortgage rates are tied to the bond market.
Typically, when the rest of the economy is doing poorly, mortgage
rates lower as well. Rockman attributed the low rates to investors
buying more bonds, which are more secure returns than the stock
market. The federal government has also bought up bonds in order to
keep mortgages down and homeownership more affordable.

 Some homeowners question whether they should pay off their
mortgages as quickly as possible or to hold on for the full 30 or
15 years. Rockman said that it varies from homeowner to
homeowner.

 ”I ask homeowners how long they plan on staying in the home,”
Rockman said. “In the last couple of years, I’ve had a lot of
customers who need payment releases so they go with a 30-year term.
Incomes are less than what they used to be and people are fearful
of being laid off.”

 Due to the sluggish economy, Rockman usually recommends
homeowners to take a 30-year mortgage instead of a 10- or 15-year
mortgage. A 30-year mortgage includes a lower monthly payment,
allowing homeowners to recover easier if financial problems
arise.

 ”It does not make sense to do a 10- or 15-year loan and put
yourself in distress just to try to pay it off quicker,” Rockman
said. “Homeowners can make additional payments in advance without
penalties, if they want to pay off homes quicker.”

 Locally, realtors are beginning to see the housing market pick
up. John Wentworth of Remax Platinum said he had a record year last
year and this year should be just as good.

 ”The market has definitely picked up. Consumer confidence is up
and mortgage rates are very good,” Wentworth said.

 Wentworth said homes in the $200,000 range and waterfront
property have been very popular in the last year. The demand for
new homes is so high that Wentworth is experiencing more buyers
than available homes.

 Realtor Kristy Cantleberry, of Remax Grand, also experienced a
record selling year last year. Cantleberry said home values have
increased by about 4 percent and foreclosed homes aren’t as
prevalent as they have been.

 ”I think the values are going to stay at the same prices they
are now,” Cantleberry said. “They may come down slightly though.
We’re seeing foreclosures coming back onto the market.”

 Rockman said that the market is experiencing a small
refinancing boom but admits she expected it to be a little bigger.
Rockman believes most homeowners aren’t calling because they assume
they won’t be eligible for refinancing.

 ”It does not hurt to call and ask,” Rockman said. “The best way
to find a reputable mortgage lender is to ask someone who already
owns a home. Word of mouth is the best way to find a good
lender.”

Mortgage rates over the years

Mortgage rates overall have been on the decline after peaking to
nearly 15 percent in the early ‘80s. By 1990, mortgage rates fell
below 10 percent and then to 8 percent in by 2000. By 2010, the
rate hovered around 5 percent. The current mortgage rates of just
fewer than 4 percent are lower than the rates seen in the ‘60s,
which hovered around 6 percent. Ann Rockman, assistant vice
president and mortgage officer with The State Bank, said mortgage
rates are tied to the economy. When the overall economy is doing
worse, more people invest in bonds, which affects overall mortgage
rates. The federal government has bought a vast amount of bonds in
order to make homeownership more affordable. Rockman said although
mortgage rates are subject to change at anytime, she expects to
current low rates to last at least a year.