” 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.
Patience Is the Key to Buying a Home This Year
Low inventory in the housing market isn’t new, but it’s becoming more challenging to navigate.
Will the Housing Market Maintain Its Momentum?
Experts have forecasted that total home sales (existing homes and new construction) will continue their momentum into next year.
4 Tips to Maximize the Sale of Your House
Despite the speed and opportunity for sellers, there are still steps you can take to prep your house so you get the greatest possible return.
Planning to Move? You Can Still Secure a Low Mortgage Rate on Your Next Home
To take advantage of today’s real estate market, experts are encouraging homeowners to act now before interest rates climb.
How Much Time Do You Need To Save for a Down Payment?
The national average for the time it would take to save for a 10% down payment is right around two and a half years (2.53).
93% of Americans Believe a Home Is a Better Investment Than Stocks
Housing represents the largest asset owned by most households and is a major means of wealth accumulation.