While economists are worried about the negative impact the stock market crash might have on consumer spending, Newport Pacific Funding is looking at a silver lining--lower home mortgage interest rates.
The residential and commercial loan firm in Newport Beach said the interest rate decline is bringing back into the housing market many people who had been priced out by higher rates earlier this year.
President Magdy Hanna said loan officers are noticing an increase in inquiries, particularly from young, first-time home buyers who say they now can afford to enter the housing market.
Adjustable rate mortgages start as low as 6.875% at some county lenders, and 30-year fixed loans are available for as low as 10%. Through the summer, the rates had been 2% to 3% higher.