” 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.
Housing Experts Say This Market Isn’t a Bubble
Lending standards are tighter due to lessons learned and new regulations enacted after the last crisis.
Expert Housing Market Forecasts for the Second Half of the Year
Housing supply is increasing, but there are still more buyers than there are homes for sale, maintaining the upward pressure on home prices.
The Drop in Mortgage Rates Brings Good News for Homebuyers
A decrease in mortgage rates means an increase in your purchasing power.
Is Homeownership Still the American Dream?
Your home is your stake in the community and a strong financial investment, something you can be proud of.
If You’re Selling Your House This Summer, Hiring a Pro Is Critical
Today’s market is at a turning point, making it more essential than ever to work with a real estate professional.
Two Reasons Why Today’s Housing Market Isn’t a Bubble
Today, there’s still a shortage of inventory, which is causing ongoing home price appreciation.