East Texas is seeing a significant boost in home sales. Real estate broker Jeff Ramsey says low interests rates are helping people buy homes.
Ramsey is the owner of Ramsey Realty Group, he sells homes across East Texas. "The lower the rate, the easier it is for people to cover their mortgage," Ramsey says.
Home interests rates are a major factor in real estate. Brokers tell us the rate is currently at 4 percent on a 30 year mortgage. The federal reserve keeps the rate low to help improve the market.
"Tax deductions are also helping buyers," Ramsey says. "The insurance, property taxes, and home interest is all tax deductible."
Ramsey also expects the rate to remain around four percent in 2017, but there is no guarantee it won't rise. The Federal Reserve will make that decision.
The big question on whether to rent or buy is complicated. Ramsey says if you are staying somewhere longer than three years then buying is the way to go, however if it is less than rent. Buying keeps wealth, while in contrast, renting puts money in someone else's pocket.