By Clyde Noel

Town Crier Correspondent

Ask Gregory Lopez, senior mortgage consultant at Diversified Capital, how his mortgage lending business is and he’ll raise his eyebrows and say things couldn’t be better.

That’s because the National Association of Realtors (NAR) predicts an increase in all major real estate indicators this year as a result of the sustained decline in mortgage interest rates.

David Lereah, NAR’s chief economist, expects the interest rate for a 30-year, fixed-mortgage to average 6.9 percent this year. That compares to last year’s average of 8.1 percent.

“With interest rates near 30-year lows and historically low unemployment, on a national level we now expect both new and existing-home sales to increase during 2001,” Lereah said.

With the all-time low interest rates, Lopez is involved with refinancing current mortgages because it’s a practical option that offers exceptional long-term rewards. Mortgage lenders can help pinpoint the best refinancing opportunity to ensure substantial savings over time.

“People are looking to refinance to give them lower monthly payments,” Lopez said. “Our programs can quickly and accurately define borrowers’ purchasing power, analyze their tax savings when they purchase a home and determine the future value of a property. This gives our clients the data they need to make an informed choice when it comes to home loans and refinancing.”

NAR expects 2001 to set a record for new-home sales nationally and estimates it will be the second-best year on record for existing-home sales. Favorable affordability conditions in most areas of the country are stimulating economic growth.

Lereah’s economic report predicts consumer price inflation of 3.1 percent for this year. The association forecasts an average 4.4 percent unemployment rate while inflation-adjusted disposable personal income should grow about 2.1 percent this year.