How Do Home Prices And Mortgage Rates Work In Birmingham, Alabama?
Birmingham is the largest city in Alabama with a population of over 220,000. The town was founded in 1871 and is home to mining, iron and steel industries. The town’s residents are hardworking people from different backgrounds that excel in the industrial sector. Birmingham also houses some well renowned medical and law schools. Those homeowners in Birmingham on the lookout for mortgage refinance and home loans should pay attention now. Like in every other state, there is a specific way home and mortgage prices are linked. Let’s discuss this in detail.
Low Mortgage Rates
Although mortgage rates remain low, the sales have still not increased. Home prices still remain inflated and people are unwilling to risk their hard earned money. Refinancing hasn’t helped either. It has adversely affected the equity of the houses meaning the buyers will not get value for their money.
The expectation for the future is that mortgage rates will rise over the next few years while home prices are expected to be steady. It is very difficult to buy homes at bottom prices because firstly, they aren’t easy to find and secondly, even if you do find them, other buyers will beat to you them. The rates and prices vary across the nation depending on circumstances and location.
How The Two Are Linked
Many believe that the reason for the inflation of property prices is low rates. However, this is completely untrue because home prices and mortgage rates aren’t closely linked. In some cases home prices may rise even if mortgage rates rise. This is down to the fact that not everybody buys property with a mortgage. Economic factors also come into play that can inadvertently affect home prices and rates.
www.mortgagerefinance.com is an excellent website for the residents of Birmingham. They can use it to find information related to home loans, refinancing and mortgage rates. We also have a mortgage calculator available that you can use to compare prices and analyze financial data.