” If you’re thinking of buying this season, here’s how mortgage interest rates are working in your favor.”
Spring is right around the corner, so flowers are starting to bloom, and many potential homebuyers are getting ready to step into the market. If you’re thinking of buying this season, here’s how mortgage interest rates are working in your favor.
Freddie Mac explains:
“If you’re in the market to buy a home, today’s average mortgage rates are something to celebrate compared to almost any year since 1971…
Mortgage rates change frequently. Over the last 45 years, they have ranged from a high of 18.63% (1981) to a low of 3.31% (2012). While it’s not likely that the average 30-year fixed mortgage rate will return to its record low, the current average rate of 3.45% is pretty close — all to your advantage.”
To put this in perspective, the following chart from the same article shows how average mortgage rates by decade have impacted the approximate monthly payment of a $200,000 home over time:Clearly, when rates are low – like they are today – qualified buyers can benefit significantly over time.
Keep in mind, if interest rates go up, this can push many potential homebuyers out of the market. The National Association of Home Builders (NAHB) notes:
“Prospective home buyers are also adversely affected when interest rates rise. NAHB’s priced-out estimates show that, depending on the starting rate, a quarter-point increase in the rate of 3.75% on a 30-year fixed rate mortgage can price over 1.3 million U.S. households out of the market for the median-priced new home.”
Bottom Line
You certainly don’t want to be priced out of the market this year, and waiting may mean a significant change in your potential mortgage payment should rates start to rise. If your financial situation allows, now may be a great time to lock in at a low mortgage rate to benefit greatly over the lifetime of your loan.
To view original article, visit Keeping Current Matters.
Is Your House the Top Thing on a Buyer’s Wish List this Holiday Season?
Anyone shopping for a new home between Thanksgiving and New Year’s is likely going to be a serious buyer.
People Are Still Moving, Even with Today’s Affordability Challenges
It’s true that buying a home has become more expensive over the past couple of years, but people are still moving.
The Latest 2024 Housing Market Forecast
The housing market is expected to be more active in 2024 and that may be in part because there will always be people whose lives change and need to move.
Thinking About Using Your 401(k) To Buy a Home?
Before you decide to dip into your retirement to buy a home, be sure to consider all possible alternatives and talk with a financial expert.
Homeowner Net Worth Has Skyrocketed
Buying a home can be a great way to grow your net worth, since home values have a tendency to rise over time, meaning you have more equity.
Reasons To Sell Your House Before the New Year
Selling now, while other homeowners may hold off until after the holidays, can help you get a leg up on your competition.