Under 4 Percent:
Mortgage Rates Plummet to New Historic Low
The cost of financing a home has declined steadily over the past several years, but with interest rates currently dipping below 4%, mortgage rates have hit an all-time record low. In 2010 you might have thought you were getting a steal for a conventional fixed mortgage at 5%.
Today you could get that same 30-year fixed mortgage for just 3.875%.
So what do these numbers mean for you and the new home you want to buy? With a loan of $300,000 at last year’s rates, you would be paying just over $1,300 per month. With today’s rates, you slash $200 per month off your payment for a yearly savings of $2,400. Multiply that by the number of years you plan on holding the loan, and you can start to see why now is the time to buy.
What Goes Down Must Come Up Again
How long can we expect these rates to last? Real estate economist Lawrence Yun predicts a change may come soon.
Despite a “sluggish economy and job market expansion ...the real estate sales and prices may have already reached their bottom,” he writes. Of course, we’re nowhere near hitting the number of home sales of 2005, when the housing bubble floated highest. But by all calculations, both home sales — and the higher interest rates generated by a more robust market — will soon be on the rise.
If you would like to schedule a private consultation and discuss how you can benefit from these historically low interest rates, give me a call or send me an email!