Mortgage rates have hit their lowest point in over a year and a half. And that’s big news if you’ve been sitting on the homebuying sidelines waiting for this moment.
Even a small decline in rates could help you get a better monthly payment than you would expect on your next home. And the drop that’s happened recently isn’t small. As Sam Khater, Chief Economist at Freddie Mac, says:
“Mortgage rates have fallen more than half a percent . . . and are at their lowest level since February 2023.”
But if you want to see it to really believe it, here’s how the math shakes out. Take a closer look at the impact on your monthly payment.
The chart below shows what a monthly payment (principal and interest) would look like on a $400K home loan if you purchased a house back in April (this year’s mortgage rate high), versus what it could look like if you buy a home now (see below):
Going from 7.5% just a few months ago to the low 6s has a big impact on your bottom line. In just a few months’ time, the anticipated monthly payment on a $400K loan has come down by over $370. That’s hundreds of dollars less per month.
Bottom Line
With the recent drop in mortgage rates, the purchasing power you have right now is better than it’s been in almost two years. Let’s talk about your options and how you can make the most of this moment you’ve been waiting for.
To view original article, visit Keeping Current Matters.
Unlocking Homebuyer Opportunities in 2024
If you’re ready and able to buy, you may find that the second half of 2024 is a bit easier to navigate.
How To Determine if You’re Ready To Buy a Home
While housing market conditions are definitely a factor in your decision, your own personal situation and your finances matter too.
Why Working with a Real Estate Professional Is Crucial Right Now
A real estate expert can carefully walk you through the whole real estate process and advise you on the best ways to achieve success.
Why Moving to a Smaller Home After Retirement Makes Life Easier
As you approach retirement, its important to think about whether your current home still fits your needs.
Why Your Asking Price Matters Even More Right Now
Accurate pricing depends on current market conditions – and only an agent has all information necessary to price your home correctly.
Not a Crash: 3 Graphs That Show How Today’s Inventory Differs from 2008
Inventory levels aren’t anywhere near where they’d need to be for prices to drop significantly and the housing market to crash.