Mortgage interest rates drop in Baton Rouge

These days, the real estate market in Baton Rouge, the capital of the U.S. state of Louisiana, brings new changes and benefits for its residents, as declared by the Federal Reserve.

After evaluating the movement of interest rates and their implications for the city’s market over a long period, the government has proposed a significant reduction in current values by the end of 2024.

The great advantage this presents for the city’s economy, agents, and homebuyers is that the market will be able to offer mortgages much more affordable to the budgets of its residents. Therefore, depending on the duration of the fixed rate, homebuyers can expect interest rates ranging between 5.9% and 7%.

What is expected from these changes is that the market will regain its mobility, thereby improving the resources and revenues of Baton Rouge. These types of reductions are anticipated to encourage buyers and investors to purchase properties, benefiting both parties: the city will progress economically, and buyers will have easier and more advantageous access to the real estate market.

Another change the market will undergo, as a result of a demand made by the National Association of Realtors, is that the administration has determined new guidelines and rules that must be followed when purchasing a home, both by agents and buyers.

Among the new procedures brought by the ruling for the realtor community and buyers, there is now an obligation to sign or agree to a written contract before visiting a property. This rule prohibits any buyer from simply calling an agent to visit a property without making prior agreements.

The advantage of this rule for the buyer is that as a result of these agreements, they will have the opportunity to engage in detailed conversations with their agent about the home-buying process, ways to access a mortgage, and address any concerns that may arise. Therefore, buyers will be well-informed about the services and opportunities available to them.

Another aspect modified by the agreement is the fees. Previously, commissions were displayed in the MLS (Multiple Listing Service) or the association of real estate agencies that share properties, accessible to all agents. But from now on, buyers and their agents will negotiate the buyer’s agent commission, allowing more transparency in agent compensation.

In light of all these changes and rules that the Baton Rouge real estate market will present, both agents and buyers express that although interest rates will see a significant decrease and the market will become more attractive, more time is needed for everyone to adjust.

Available foreclosures:

Baton Rouge: 120 homes available.

New Orleans: 85 homes available.

Lafayette: 60 homes available.

By Elias DaSilva | September 25, 2024