Low Mortgage Rates an Opportunity to Buy Into Nebraska's Rural Living

By Richard Barrington
Local Lender Columnist
Jun 16, 2008
An old saying reminds us that it is a fool who knows the price of everything and the value of nothing. This is a good way to look at all the news about the housing market: prices may be down this year, but what you value has more permanence than the fluctuations on some economist's chart.

For people who value rural living, several counties in Nebraska have been identified as among the best places to live in the Midwest. This comes at a time when lower mortgage rates make buying into that rural lifestyle unusually affordable. In other words, to anyone who would rather buy value than jump into the middle of a real estate boom, the current environment may well look attractive.

Nebraska Has Nine of the Midwest's Top 100 Counties for Rural Living

Progressive Farmer magazine identified nine Nebraska counties as among the Midwest's top 100 in its most recent "Best Places to Live in Rural America" report. The list was based on a number of factors, including real estate prices, crime rate, education, local economy, and health care.

Nebraska's top-ranked county on the list was Red Willow County at number 10, closely followed by Adams County at number 12, and Wayne County at number 18. The counties of York, Cuming, Nemaha, Hamilton, Saline, and Madison round out the Nebraska representatives in the top 100.

Given the nature of the list and its criteria, these rankings provide prospective homebuyers with a guide to where good quality-of-life communities can be found.

The Mortgage Rate Opportunity

Current mortgage rates are proving to be particularly cooperative to anyone who wants to buy into Nebraska's rural lifestyle. Mortgage rates have been in a downward trend overall since the middle of last year, and recently passed back below the 6.0% mark -- pretty uncommon territory for thirty-year mortgage rates. Ironically, all the troubles plaguing the housing and mortgage industries are actually contributing to this buying opportunity. As demand for housing falls, both home prices and mortgage rates tend to fall.

While cheaper home prices might present the most obvious bargains, lower interest rates can save the homebuyer a considerable amount over the life of a mortgage. This means both monthly payments that are more budget-friendly, and in the long run, lower total interest expense.

The quality-of-life values in Nebraska tend to be based on long-term characteristics. The same cannot necessarily be said for the mortgage rate opportunity. Mortgage rates are notoriously volatile, and so there is no telling how long this low interest environment will last.

About the Author
Richard Barrington is a freelance writer and novelist who previously spent over twenty years as an investment industry executive.