Mortgage Rates Will Stay Low

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BAY COUNTY - Don Mueller is cleaning up his home before potential buyers come over Thursday evening. That includes hosing the back porch and cleaning up the front yard.

"We've been here about 9 years, my wife and I, and we're upgrading our family. We've got a newborn baby on the way, so we need a little bit bigger house," said Mueller.

The Mueller family is one of thousands that now feel confident about entering back into the housing market and those potential buyers have good reason.

Chairman Ben Bernanke announced Wednesday the Federal Reserve will not be cutting back on its $85 billion monthly bond buying program.

It's a cut could have hurt the recovering housing market. Instead, local realtors say the announcement should have the opposite effect.

"It's just an opportunity that just does not come along everyday and right now with the interest rates, you can buy and a lot often times, I've had the experience with people's mortgage payment is less than rent," said Vince Price, a realtor.

Right now buyers can get a 30 year mortgage with a fixed interest rate of about 4% in Bay County. It's a rate Mueller believes he and his family can manage.

"But as long as they're keeping them low right now, it's kind of taking some of the stress off the anxiety and the rush and the need to move on," said Mueller.

The most recent figures show the average selling price of a Bay County home is about $175,000.

Last month's home sales were the highest level the nation has had in 6 1/2 years. Some believe there was a rush by buyers who expected interest rates to go up.