” 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.
Homeowners Have Incredible Equity To Leverage Right Now
A real estate professional can help you understand the value of your home, so you’ll get a clearer picture of how much equity you have.
It May Be Time To Consider a Newly Built Home
When housing inventory is as low as it is right now, it can feel like a bit of an uphill battle to find the perfect home.
Why Buying a Home Makes More Sense Than Renting Today
With rents much higher now than they were in more normal, pre-pandemic years, owning your home may be a better option.
Why Today’s Foreclosure Numbers Are Nothing Like 2008
While foreclosures are climbing, it’s clear foreclosure activity now is nothing like it was during the housing crisis.
What Are the Experts Saying About the Spring Housing Market?
Buyers are going to see more competition than they might expect because there are not many homes on the market.
The Power of Pre-Approval
Pre-approval gives you critical information about the homebuying process that’ll help you understand how much you may be able to borrow.